The decrease in total surplus that results from a market distortion, such as a tax, is called a
A)wedge loss.
B)revenue loss.
C)deadweight loss.
D)consumer surplus loss.

Question

Quizplus · Accepted Answer

Deadweight loss refers to the loss in total surplus (consumer surplus plus producer surplus) that occurs when a market is not operating efficiently, such as when there is a tax or subsidy that distorts market outcomes.

The Decrease in Total Surplus That Results from a Market