When a price floor is set above the equilibrium price, it leads to a deadweight loss due to the reduction in the number of transactions. This loss is primarily caused by the inefficiency in allocation of resources, where potential gains from trade are lost. The area representing this loss can be visually identified as the triangle between the supply and demand curves, which is known as the __________.

When a price floor is set above the equilibrium price, it means that the minimum price for a good is higher than what buyers and sellers would naturally agree on. This leads to fewer transactions because some buyers are not willing to pay the higher price, and some sellers may not want to sell at that price, resulting in a surplus. The deadweight loss occurs because there are potential trades that could have happened but didn’t, creating a loss of economic efficiency. This loss can be visualized as a triangle formed between the supply and demand curves, known as the deadweight loss triangle. For example, if a price floor for bread is set too high, some people may stop buying bread, leading to unsold bread and wasted resources.