Tuesday, October 28, 2008

4. Who gains from deadweight loss? What happens to the deadweight loss when the consumer surplus grows?

No one gains from deadweight loss except government interventionists, and whoever or whatever the intervention is intended for. Some examples of this are monopolies, corporate welfare, price controls, and tariffs. As consumer surplus grows, the deadweight loss grows.

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QE3 Is Here!

Move over QE2, QE3 is here! The markets are euphoric for now.