Question

The decrease in total surplus that results from a market distortion, such as a tax, is called a a. consumer surplus loss. b. wedge loss. c. deadweight loss. d. revenue loss.

Answer 1

Option "C" is the correct answer to the following question.

Step-by-step explanation:

Dead-weight loss : A dead-weight loss seems to be a burden or tax or pay to society generated by the ineffectiveness of the economy, which arises when market forces are out of control. Dead-weight loss may be attributed to any deficit caused by an inadequate redistribution of capital primarily used of economy.