If a tax and a price control have the same effect on the price paid by consumers,then the two policies will create the same deadweight loss.

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Quizplus · Accepted Answer

Although a tax and a price control might lead to the same price paid by consumers, their impacts on market equilibrium, supply, and demand can differ, leading to different amounts of deadweight loss. A tax affects both the supply and demand sides by altering the costs and prices, while a price control directly sets price limits, affecting the quantity supplied and demanded differently.

If a Tax and a Price Control Have the Same