If the market price is at equilibrium, the deadweight loss is maximized.

Name: If the market price is at equilibrium, the deadweight loss is maximized.
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Question

Quizplus · Accepted Answer

If the market price is at equilibrium, there is no deadweight loss present since the quantity demanded and supplied are equal, and the market is efficient. Deadweight loss occurs when markets are not at equilibrium and there is a loss of surplus due to inefficiency. Therefore, the statement is false.

If the Market Price Is at Equilibrium, the Deadweight Loss