Question

Graphically, deadweight loss is shown by the: select one:

a. welfare loss rectangle.
b. welfare loss triangle.
c. tax revenue rectangle.
d. consumer surplus loss triangle.

Answer 1

Deadweight is a loss of economic efficiency. This loss occurs when equilibrium for a good or service is not achieved or is not achievable.
Graphically deadweight loss is shown with B. welfare loss triangle, called Harberger's triangle. The Harberger's triangle refers to the deadweight loss (as measured on a supply and demand graph) associated with government intervention in a perfect market.