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Deadweight loss : Taxes and Perfectly Elastic Demand

Sal Khan

Abstract

We can often lose economic efficiency because of things like price floors, ceilings and taxes. This loss in surplus (people who have more marginal benefit than marginal cost are not buying or people who have more marginal cost than benefit are buying) is. Source: Khan Academy (www.khanacademy.org), used under the Creative Commons Attribution-NonCommercial-ShareAlike (CC BY-NC-SA) license. All Khan Academy content is available for free at www.khanacademy.org. Khan Academy does not endorse the World Public Library.

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