The Excess Burden or Deadweight Loss of a Tax Refers

Multiple Choice

The excess burden or deadweight loss of a tax refers to the

A) increase in product price as a result of the tax.
B) growth in government funded programs as a result of the revenue generated by the tax.
C) loss of disposable income consumers suffer from the tax.
D) reduction in gains from mutually beneficial exchanges that are eliminated as a result of the tax.