A deadweight loss
A) is possible only if the good is underproduced but is not possible if the good is overproduced.
B) subtracts only from producer surplus.
C) is a loss to consumers and a gain to producers.
D) is a loss inflicted on the entire society.

Question

Quizplus · Accepted Answer

Deadweight loss represents a loss of economic efficiency when the equilibrium outcome is not achieved, affecting both consumers and producers, and thus is a loss to society as a whole.

A Deadweight Loss