After a tax is imposed some people change their behaviour.These changes cause a deadweight loss to be generated.

Name: After a tax is imposed some people change their behaviour.These changes cause a deadweight loss to be generated.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

When a tax is imposed, individuals and businesses may change their behavior, such as reducing their consumption or production, in response to the increased cost. These changes, in turn, cause a deadweight loss to occur as resources are not being used efficiently.

After a Tax Is Imposed Some People Change Their Behaviour