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What is the cause of deadweight loss (and/or why is deadweight loss inefficient)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 14px A v In ... P O WORDS POWERED BY TINY

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the cause of deadweight loss (and/or why is deadweight loss inefficient)?
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Expert Solution

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Deadweight loss happens due to disequilibrium between demand and supply.

That happens due to tax,susidy,price ceiling,price floor etc.

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