Deadweight loss:
A) occurs when the market price is set above the equilibrium price.
B) occurs when the market price is set below the equilibrium price.
C) is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity.
D) All of these are true.

Question

Quizplus · Accepted Answer

Deadweight loss occurs when the market price is set above or below the equilibrium price, resulting in a loss of total surplus when the quantity of a good bought and sold is below the market equilibrium quantity.

Deadweight Loss