Deadweight loss is
A)borne entirely by consumers.
B)gained by producers.
C)the social loss from inefficiency.
D)not a problem with overproduction.
E)all of the above.

Question

Quizplus · Accepted Answer

Deadweight loss is the social loss from inefficiency, which is caused by market inefficiencies such as taxes, subsidies, and price ceilings or floors. It is not solely borne by consumers or gained by producers, and it is a problem with overproduction or underproduction.

Deadweight Loss Is