Exhibit 7-9 Refer to Exhibit 7-9.The deadweight loss of a tax is area:

Name: Exhibit 7-9 Refer to Exhibit 7-9.The deadweight loss of a tax is area:
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Question

Exhibit 7-9  Refer to Exhibit 7-9.The deadweight loss of a tax is area:

Quizplus · Accepted Answer

The deadweight loss of a tax is equal to the area of the triangle formed by the change in quantity demanded and the change in price, which in this case is the sum of areas c and e. Therefore, the correct answer is (C) c + e.