True or False: Deadweight loss is the loss in total surplus that occurs whenever an action reduces the quantity transacted below

Question

agasfer [191]

4 years ago

8

True or False: Deadweight loss is the loss in total surplus that occurs whenever an action reduces the quantity transacted below

the efficient market equilibrium. This is _____.

Social Studies

1 answer:

Allushta [10] · Answer 1 · 2021-12-06T02:11:02+03:00

Answer:

true

Explanation:

Based on the information provided within the question it can be said that the statement that is being made is completely true. Deadweight loss is a cost to society that has arisen due to market innefficiency and occurs when the supply and demand of an economy are out of equilibrium. This term can be used anywhere that there is an inefficient allocation of resources.