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- 2016-4-19
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Just wondering if someone could explain the rationale behind this question. I thought that a dedweight losss would affect both producer and consumer surplus regardless of whether it was caused by overproduction or underproduction. Here is the QBank Question:
Which of the following statements regarding deadweight loss is least accurate?
A) Deadweight loss from underproduction leads to a loss of producer surplus but not consumer surplus.
B) An overproduction of goods can lead to a reduction in consumer surplus.
C) Deadweight loss occurs when the quantity supplied does not maximize the sum of consumer and producer surplus.
Your answer: B was incorrect. The correct answer was A) Deadweight loss from underproduction leads to a loss of producer surplus but not consumer surplus.
Deadweight loss is the reduction in consumer and producer surplus due to underproduction or overproduction. |
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发表于 2011-7-13 16:35
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