Asked by
Corrine Stephens
on Nov 17, 2024Verified
If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss.
Buyers
Individuals or entities that purchase goods or services for personal use or for resale.
Sellers
Individuals or businesses that provide goods or services to consumers in exchange for payment.
- Understand the concept of deadweight loss caused by taxes and its implications on market efficiency.
Verified Answer
AN
Learning Objectives
- Understand the concept of deadweight loss caused by taxes and its implications on market efficiency.