Deadweight loss is
A) not a social loss.
B) made up of a loss of only consumer surplus.
C) made up of a loss of only producer surplus.
D) made up of a loss of both consumer surplus and producer surplus.

Question

Quizplus · Accepted Answer

Deadweight loss represents the loss of total welfare in a market, which includes both consumer surplus and producer surplus, due to inefficiencies such as taxes, subsidies, or price controls.

Deadweight Loss Is