The deadweight loss from an excise tax comes about because:

A) the number of transactions in the market is smaller than the no-tax equilibrium.
B) some mutually beneficial transactions do not take place.
C) a quota rent exists.
D) the number of transactions in the market is reduced and some mutually beneficial transactions do not take place.

Deadweight Loss

A reduction in total welfare or economic efficiency, typically resulting from inefficiencies such as taxes or monopolies.

Mutually Beneficial Transactions

Economic exchanges where both parties gain value or benefit from the transaction.

No-Tax Equilibrium

A market situation where goods or services are exchanged without the imposition of taxes, leading to an unaltered allocation of resources.