An excess burden
A)is more taxation than consumers can bear.
B)is the change in the quantity demanded due to a change in taxation.
C)is measured as the tax burden based on income.
D)is the welfare loss above and beyond the tax revenue collected.

Question

Quizplus · Accepted Answer

An excess burden, also known as a deadweight loss, refers to the loss of economic efficiency when the equilibrium outcome is not achievable due to taxation. It represents the welfare loss that exceeds the tax revenue collected.

An Excess Burden