Question
Deadweight loss __________.
Is the welfare gain that society experiences when the amount of a good that is produced is more than the market equilibrium quantity.
The sum of Consumer Surplus and Producer Surplus.
Is the welfare loss that society experiences when the amount of a good that is produced is less than the competitive market equilibrium quantity.
Is the result of allocative efficiency.
Is the welfare gain that society experiences when the amount of a good that is produced is more than the market equilibrium quantity.
The sum of Consumer Surplus and Producer Surplus.
Is the welfare loss that society experiences when the amount of a good that is produced is less than the competitive market equilibrium quantity.
Is the result of allocative efficiency.
Answers
GPT-4o mini
Deadweight loss is **the welfare loss that society experiences when the amount of a good that is produced is less than the competitive market equilibrium quantity.**
This condition typically arises from market distortions such as taxes, subsidies, or price controls, leading to an inefficient allocation of resources and a decrease in total welfare.
This condition typically arises from market distortions such as taxes, subsidies, or price controls, leading to an inefficient allocation of resources and a decrease in total welfare.