Final answer:
The deadweight loss created as a result of prohibiting trade in a market is the loss in social surplus that occurs when the economy produces at an inefficient quantity.
Step-by-step explanation:
The deadweight loss created as a result of prohibiting trade in a market is the loss in social surplus that occurs when the economy produces at an inefficient quantity. It is like money thrown away that benefits no one. In Figure 3.24 (a), the deadweight loss is represented by the area U + W. This loss occurs because the price control is blocking some suppliers and demanders from making transactions that they would both be willing to make.