Deadweight loss:
A) creates efficiency in markets.
B) is the difference between the total surplus occurring in a market and the maximum total surplus achievable.
C) is the loss in producer surplus from a price increase
D) always occurs in markets.

Question

Quizplus · Accepted Answer

Deadweight loss is the loss of economic efficiency when equilibrium for a good or service is not achieved or is not achievable. It is the difference between the total surplus occurring in a market and the maximum total surplus achievable.

Deadweight Loss