The supply curve and the demand curve for a good are straight lines. When the good is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is

The supply curve and the demand curve for a good are straight lines. When the good is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is





a. larger than the area that represents consumer surplus in the absence of the tax.
b. larger than the area that represents government's tax revenue.
c. a triangle.
d. All of the above are correct.






Answer: C


Microeconomics

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