Deadweight loss is the A、. reduction in total surplus that results from a tax. B、. loss of profit to businesses when a tax is imposed. C、. reduction in consumer surplus when a tax is placed on buyers. D、. decline in government revenue when taxes are
2. Which piece of information do you NOT need to know in order to determine deadweight loss? The original price of the product. The new price after the price ceiling, price floor, or tax is imposed. The original quantity demanded. The net profits from the business for the last period. ...
In such a scenario, the trip would not happen, and the government would not receive any tax revenue from you. The deadweight loss is the value of the trips to Vancouver that do not happen because of the tax imposed by the government. Graphically Representing Deadweight Loss Consider the graph...