question\nwhy does a \per unit\ tax create a deadweight loss?\nselect the correct answer below:\nit results…

question\nwhy does a \per unit\ tax create a deadweight loss?\nselect the correct answer below:\nit results in too much of the good being bought and sold on the market\nit transfers surplus from producers to consumers\nit transfers surplus from consumers to producers\nit creates a wedge between the price consumers pay and the price producers receive

question\nwhy does a \per unit\ tax create a deadweight loss?\nselect the correct answer below:\nit results in too much of the good being bought and sold on the market\nit transfers surplus from producers to consumers\nit transfers surplus from consumers to producers\nit creates a wedge between the price consumers pay and the price producers receive

Answer

Brief Explanations:

A per - unit tax creates a wedge between the price consumers pay and the price producers receive. This distortion in prices leads to a reduction in the quantity traded in the market compared to the free - market equilibrium. The lost economic surplus from the reduced quantity traded is the deadweight loss. The other options are incorrect as a per - unit tax doesn't result in too much of the good being bought and sold, and it's not mainly about transferring surplus between producers and consumers in a way described in the other non - correct options.

Answer:

it creates a wedge between the price consumers pay and the price producers receive