Market Efficiency

Market efficiency refers to the perfect point by which consumers and businesses’ needs are met. This is otherwise known as the equilibrium and is the area which markets tend to fluctuate towards through periods of oversupply and overdemand

Producer Surplus Definition

Producer Surplus Definition

The producer surplus is the difference between what the producer sells its goods for and the minimum price it would be willing to sell for. In other words, because the producer is selling at a higher price than they would accept, a ‘producer surplus’ is created.

Deadweight Loss Definition

Deadweight Loss Definition

A deadweight loss is a loss in economic efficiency as a result of disequilibrium of supply and demand. In other words, goods and services are either being under or oversupplied to the market – leading to an economic loss to the nation.