User:Dianaviry/sandbox

Deadweight Loss is the term assigned to the difference in production and consumption of any given product or service including government tax. The presence of Deadweight Loss is most commontly identified when the quantity produced relative to the amount consumed differs in regards to the optimal concentration of surplus. This difference in the amount reflects the quantity that is not being utilized or consumed and thus resulting in a Loss. This "Deadweight Loss" is then atributed to both, producers and consumers because neither one of them benefits from the surplus of the overall production.