A tax on a ~ood has a deadweight loss if a. the reduction in consumer and producer surplus isgreater than the tax revenue.h. the tax revenue is greater than the reduction inconsumer and producer surplus.r.. the reduction in consumer surPlus is $!reater thanthe reduction in producer surplus.d. the reduction w prOducer surplus is greater thanthe reduction in consumer surotus.

A tax on a ~ood has a deadweight loss if a. the reduction in consumer and producer surplus isgreater than the tax revenue.h. the tax revenue is greater than the reduction inconsumer and producer surplus.r.. the reduction in consumer surPlus is $!reater thanthe reduction in producer surplus.d. the reduction w prOducer surplus is greater thanthe reduction in consumer surotus.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Costs Of Taxation

Section: Chapter Questions

Problem 1CQQ

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Question

A tax on a ~ood has a deadweight loss if a. the reduction in consumer and producer surplus is
greater than the tax revenue.
h. the tax revenue is greater than the reduction in
consumer and producer surplus.
r.. the reduction in consumer surPlus is $!reater than
the reduction in producer surplus.
d. the reduction w prOducer surplus is greater than
the reduction in consumer surotus.

Definition Definition Cost to society created by market inefficiency when supply and demand are not in market equilibrium.

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