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What you should know about deadweight loss
What you should know about deadweight loss
Sep 3, 2025 1:20 PM

Note: This is post #24 in a weekly video series on basic microeconomics.

When prices are controlled, the mutually profitable gains from free trade cannot be fully realized, creating what is known as deadweight loss. In this video by Marginal Revolution University, Alex Tabarrok shows how to calculate deadweight loss using our example of a price ceiling on gasoline.

(If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series:Why did people in the 1970s have to wait in line for gas?

Previous Article：Economist as prophet vs. savior Next Article：Why “opportunity zones” are an opportunity to expand cronyism
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