| What does the deadweight loss of a tax measure? |
| | | A. the deadweight loss measures all of these | | | B. the lost revenue to businesses because of higher prices to consumers from the tax | | | C. the loss in a market to buyers and sellers that is not offset by an increase in government revenue | | | D. the loss in revenue to the government when buyers choose to buy less of the product | |
| What does the deadweight loss of a tax measure? |
| | | A. the deadweight loss measures all of these | | | B. the lost revenue to businesses because of higher prices to consumers from the tax | | | C. the loss in a market to buyers and sellers that is not offset by an increase in government revenue | | | D. the loss in revenue to the government when buyers choose to buy less of the product | |
\"C\"
The loss is a market to buyers and sellers that is not offset by an increase in government revenue. The deadweight loss is a loss to both the consumer, they have to pay a higher price for the goods and the supplier who sell a lesser amount of goods. Both these losses are not covered up by the increase in government revenue.
Homework Sourse
