In a monopolistic market, how does setting a price above equilibrium impact total welfare?

In a monopolistic market, when a company sets its price above the equilibrium price, it leads to a situation called deadweight loss. This means that the total welfare, which includes the benefits for both consumers and producers, decreases. For example, if a monopolist sells a product for $10 instead of the equilibrium price of $8, fewer people will buy the product because it’s more expensive. As a result, some consumers who would have bought the product at the lower price are unable to do so, and the monopolist also misses out on potential sales. Overall, this creates a loss in economic efficiency because the quantity of goods produced and consumed is lower than what would be best for society.