Use the following to answer questions:
Figure: A Market with a Tax
-(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The deadweight loss arising from the imposition of this tax is equal to the areas:

Question

Use the following to answer questions:
Figure: A Market with a Tax 
-(Figure: A Market with a Tax) Look at the figure A Market with a Tax. The deadweight loss arising from the imposition of this tax is equal to the areas:

Quizplus · Accepted Answer

The deadweight loss from a tax is represented by the loss of total surplus, which is the sum of the consumer and producer surplus that is not transferred to the government as tax revenue. In the diagram, this is typically shown as the area of the triangles that are not covered by tax revenue, which is C + F.

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