What occurs when a market is not in equilibrium, leading to a loss of economic efficiency?

When a market is not in equilibrium, it means that the supply of goods does not match the demand for those goods. This mismatch can lead to a situation called deadweight loss, which represents the loss of economic efficiency. For example, if a government sets a price ceiling that is too low, it can cause a shortage of goods because producers may not want to sell at that price. As a result, some consumers who want to buy the product cannot find it, leading to wasted resources and lost sales. Overall, deadweight loss shows how both consumers and producers can suffer when the market is not functioning properly.