Introduction to Dead Weight Loss (Welfare Loss)

As we've learned in earlier lessons, markets tend to achieve equilibrium prices and quantities that are efficient, as the marginal benefit of a product to its consumers equals the marginal cost to producers. But what makes outcomes other than equilibrium inefficient? This lesson looks at the impact of disequilibria on consumer and producer surplus, introducing the concept of "deadweight loss" or "welfare loss", which will further help us understand what makes outcomes other than the equilibrium quantity and price inefficient.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

[@realdvgarg]

I had done this concept a year ago and I was quite confident with it. But you always seem to give an edge to my knowledge. Keep it up!

[@angelofrisina9231]

Such a great video, really helped me understand a few key points much better. Thank you!

[@vivekanand6618]

Thanks Sir... for good explanation of D. W. Loss.. 🙏🙏

[@johnnytarkpah6782]

This video should be far more then 16 thousand by now because your explanation is one of the simplest on the subject

[@dumdum5296]

it is now

[@user-tv8jd9lg7o]

Thank you for your brief explanation.

[@JB-ie6dn]

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[@karan_karan_karan]

i skip that so fast omg

[@chrisweber759]

Do tarrifs create a surplus of quantity or do they behave differently than other types of price floors?

[@saniabanu499]

best explanation. thankyou

[@bradleythirumurthi]

Awesome video!

[@geraldinemateos3466]

Thank you !! the video was very helpful :)

[@lydiabrobbey5950]

A little clarification, I thought the new producer surplus would be the very little triangle (3m) beneath and not including the rectangle (12m).

[@jumamwangaza5843]

And this was superb

[@raajrajan1956]

good preentation.you can also dsicuss what is optimum tax gdp ratio

[@jackiengai860]

excellent explanation. perfect 👏👏👏👏👏

[@lethreebros5488]

Thanks helped allot 😊

[@michaelattafrimpong9827]

thank u for ur support keep it up

[@footballandsoccerhq]

How do we know that the producers with the greatest surplus will sell at 7? How come others that can make a producer surplus who can sell from 3 to 7 dollars won't be able to sell the beef?

[@tomtomgaming612]

Why does he time the base with 6 when finding consumer surplus and producer surplus?

[@jessicavandyke9693]

When did 5-1 start to =6???

[@moammadaliyaqubi6806]

(7-3)*3 you didnt divide it by 2, while you did for calculating other two welfares!

[@styt3geia]

it's area of rectangle not area of triangle, that's why

[@mvrma5746]

what is the logic behind devided by 2? please explain

[@mvrma5746]

got it

[@raajrajan1956]

area formula for right angled triangle

[@jademedorzil2850]

👌🏽👌🏽👌🏽

[@deepak_chahal_w]

Grt

[@vitalliao7812]

Why my professor doesn't teach in this way in class?? so we are all better off./ Come on teacher

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[@azzahraaulia4078]

bop intro

[@MrMurfle]

Why would you want to maximize total surplus ('welfare') where consumers are many and typically not wealthy and producers are few and typically very wealthy, as would be the case for many products? A dollar to a poor or average person would be worth more to them than to the fat-cat producers.

[@woodpecker961]

Excuse me why am i watching it in Deadpool 2 Playlist..?

[@HARTOONIE]

beef

[@medhanshsharma4453]

jai shree ram