A monopolistic firm decides to increase its product price above the equilibrium level. Which of the following consequences best describes the resulting impact on market efficiency and consumer welfare?

When a monopolistic firm raises its product price above the equilibrium level, it creates a situation where fewer consumers can afford to buy the product. This leads to a decrease in the quantity sold, meaning that some potential transactions that could have benefited both the consumer and the firm do not happen. As a result, the market becomes less efficient because resources are not being used to their full potential; some consumers who would have bought the product at a lower price are now unable to do so. For example, if a company sells a toy for $10 instead of the equilibrium price of $7, some kids who wanted the toy at $7 will not buy it at $10, leading to lost sales. This loss of sales represents a deadweight loss, harming both consumer welfare and overall market efficiency.