question\nhow does the concept of deadweight loss apply to a per unit tax?\nselect the correct answer…

question\nhow does the concept of deadweight loss apply to a per unit tax?\nselect the correct answer below:\na per unit tax results in a loss in social surplus.\na per unit tax results in a loss in producer surplus and foreign production.\na per unit tax results in an increase in both producer and consumer surplus.\na per unit tax results in a decrease in government revenue.

question\nhow does the concept of deadweight loss apply to a per unit tax?\nselect the correct answer below:\na per unit tax results in a loss in social surplus.\na per unit tax results in a loss in producer surplus and foreign production.\na per unit tax results in an increase in both producer and consumer surplus.\na per unit tax results in a decrease in government revenue.

Answer

Brief Explanations:

Deadweight loss is the loss of economic efficiency that occurs when the equilibrium outcome is not achieved. A per - unit tax creates a wedge between the price consumers pay and the price producers receive. This leads to a reduction in the quantity traded compared to the free - market equilibrium. Social surplus is the sum of consumer and producer surplus. The reduction in quantity due to the per - unit tax results in a loss in social surplus, which is the deadweight loss.

Answer:

A. A per unit tax results in a loss in social surplus.