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When does deadweight loss occur to society?
Applying consumer and producer surplus the efficiency costs of a tax:
A tax causes a deadweight loss to society, since less the good is generated and consumed than into the absence of the tax. As an outcome, some mutually beneficial trades in between consumers and producers do not take place.
Change in consumer Taste/preference: Any change in consumer taste or preference causes demand to change. Increased taste or preference for a particular good causes demand to inc
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