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3. Which of the following statements about deadweight loss is true? a. Sales tax will always cause deadweight loss. b. If supply is not perfectly
3. Which of the following statements about deadweight loss is true?
a. Sales tax will always cause deadweight loss.
b. If supply is not perfectly inelastic, the more elastic the demand is, the larger the deadweight loss.
c. Deadweight loss is defined as the decrease in consumer surplus due to tax.
d. Deadweight loss is defined as the decrease in producer surplus due to tax.
e. Deadweight loss is the gain transferred to the government.
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