what are the determinents of deadweight loss
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Deadweight loss occurs when supply and demand are not in equilibrium, which leads to market inefficiency. Market inefficiency occurs when goods within the market are either overvalued or undervalued.
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Mainly used in economics, deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources. Price ceilings, such as price controls and rent controls; price floors, such as minimum wage and living wage laws; and taxation can all potentially create deadweight losses
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