Question

The (a)____________ refers to a loss one party that is not offset by gains to someone else. For example, if you bought a gift for Jose for $235, but the gift is only worth $100 to Jose, then the (a)____________ is (b)____________.

Answer 1

a. Deadweight loss

b. $135

Step-by-step explanation:

The deadweight loss is a situation when the demand and the supply is not within the equilibrium. It could be applied at the time when there is a deficiency that results in non-efficient resource allocation

So as per the given situation, the deadweight loss is the answer

And, the amount would be

= Purchase value - worth value

= $235 - $100

= $13