Question

if the deadweight loss of taxation become equal to total surplus how much will be tax revenue?​

Answer 1

Answer:

In general, a tax raises the price the buyers pay, lowers the price the sellers receive, and reduces the quantity sold. If a tax is placed on a good and it reduces the quantity sold, there must be a deadweight loss from the tax. ... A tax will generate a greater deadweight loss if supply and demand are inelastic.