Deadweight loss is the decrease in _______ from producing an inefficient amount of a product.
A) only producer surplus
B) consumer surplus and producer surplus
C) profit
D) only consumer surplus

Question

Quizplus · Accepted Answer

Deadweight loss refers to the loss in total surplus, which includes both consumer surplus and producer surplus, due to inefficiencies in a market, such as those caused by taxes, subsidies, price floors, or ceilings.

Deadweight Loss Is the Decrease in _______ from Producing an Inefficient