What represents deadweight loss in a market economy?

Deadweight loss in a market economy represents the loss of economic efficiency when the equilibrium outcome is not achieved. This can happen due to taxes, subsidies, price ceilings, or price floors, which prevent the market from reaching its optimal level of supply and demand. For example, if the government sets a price ceiling on rent, it may lead to a shortage of available apartments, meaning not all people who want to rent can find a place. This results in some consumers being unable to rent, and landlords may not be willing to provide enough apartments, causing a loss of welfare for both sides. Essentially, deadweight loss shows the missed opportunities for trades that could have benefited both buyers and sellers if the market were functioning freely.