Deadweight losses represent the
A)inefficiency that taxes create.
B)shift in benefit from producers to consumers.
C)part of consumer and producer surplus that is now revenue to the government.
D)increase in revenue to the government.

Question

Quizplus · Accepted Answer

Deadweight losses represent the inefficiency that taxes create by reducing the quantity of goods or services exchanged below the optimal level. As a result, both consumers and producers lose out, and there's a reduction in economic welfare.

Deadweight Losses Represent the