Taxes create deadweight loss for consumers only

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1. Deadweight loss occurs when the supply curve shifts inward due to a change in input prices.

2. Taxes create deadweight loss for consumers only.

3. The existence of deadweight loss means that taxation is always harmful to the economy.

4. Under conditions of perfect competition, all firms make positive economic profits.

5. Consumer surplus refers to the additional consumers who cannot obtain the goods they wish to purchase.

Reference no: EM131240690

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