How to calculate change in deadweight loss when the tax rate changes

In my microeconomics course this week, I’m studying about markets and economic welfare. One thing I was learning about is deadweight loss. Deadweight loss is basically the loss of value when a tax is introduced. In calculating deadweight loss, economists have to make a few assumptions. First, they have to assume that the price before […]


There’s more to economic efficiency than financial benefits

Sometimes there are benefits that can’t be bought. And not all resources must generate a profit.