Deadweight Loss Is the

question 81

Multiple Choice

Deadweight loss is the

• A)decline in total surplus that results from a tax.
• B)decline in government revenue when taxes are reduced in a market.
• C)decline in consumer surplus when a tax is placed on buyers.
• D)loss of profits to business firms when a tax is imposed.

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Definitions:

Americans

Residents or citizens of the United States of America.

Elasticity Evidence

Data or information demonstrating the responsiveness of the quantity demanded or supplied of a good or service to changes in its price.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to a normal good.

Normal Good

A type of good for which demand increases as the income of individuals increases, indicating a direct relationship between income and demand.