clarify- deadweight loss

CFA Level I Economics
#1

Deadweight loss

cause: a shift in either the demand or supply curve and therefore, equilibrium can no longer be achieved

effect: inefficient markets leading to poor allocation of resources and therefore, lost of consumer and producer surplus

calculation: difference between marginal benefit and marginal cost

Did I get it right? Are those the only things I need to know about deadweight loss aside from calculating it?

#2

Yup.

#3

Thanks again

#4

D’accord.

#5

It is not like equilibrium cant be achieved, but an equilibrium has been disturbed by some external factors. And one more thing is, there can be either consumer or a producer surplus loss and may not be both. But the point you need to remember is, total surplus will be less that that of equilibrium point.