Underproduction of a good ________ create a deadweight loss and overproduction of a good ________ create a deadweight loss.
A) will; will
B) will; will not
C) will not; will
D) will not; will not

Question

Quizplus · Accepted Answer

Underproduction and overproduction both lead to inefficiencies in the market, resulting in deadweight loss, which is the loss of economic efficiency when the equilibrium outcome is not achieved.

Underproduction of a Good ________ Create a Deadweight Loss and Overproduction