A deadweight loss occurs ________ in a market.
A) only when there is overproduction
B) only when there is underproduction
C) when there is efficient production
D) when there is underproduction or overproduction

Question

Quizplus · Accepted Answer

Deadweight loss occurs when there is either underproduction or overproduction in a market, leading to inefficiency where the market allocation of resources is not optimal, causing losses in economic welfare.

A Deadweight Loss Occurs ________ in a Market