For ten points, identify this condition absolutely absent in Pareto optimal systems, a loss of economic efficiency created by market failure.
In a Marshallian demand system, when demand is perfectly elastic or supply is perfectly inelastic, this quantity is zero, while in a Hicksian system, if demand is inelastic, a secondary income effect causes this to occur. This situation occurs frequently in cases of price ceilings, when producer surplus does not increase at the same rate as consumer surplus. Externalities and taxes are notable causes of this situation, which may be represented on a graph as a triangle created by the intersecting lines of consumer surplus, producer surplus, equilibrium, and the tax-adjusted price in one situation. For ten points, identify this condition absolutely absent in Pareto optimal systems, a loss of economic efficiency created by market failure.
In a Marshallian demand system, when demand is perfectly elastic or supply is perfectly inelastic, this quantity is zero, while in a Hicksian system, if demand is inelastic, a secondary income effect causes this to occur.
{deadweight loss}