Which of the following would be a deadweight loss from a tariff?
A)The shift of consumer surplus to government
B)The increase in producer surplus
C)The decrease in consumer surplus
D)The decrease in consumer surplus due to a drop in consumption
E)All of the above.

Question

Quizplus · Accepted Answer

Deadweight loss from a tariff occurs when there is a loss of consumer surplus due to a reduction in consumption, which is not offset by gains elsewhere in the economy.

Which of the Following Would Be a Deadweight Loss from a Tariff