In the figure, as quanity of gloves increases from 1000 units to 2000 units to 3000 units to 4000 units, the deadweight loss falls at first then rises
In order to attain the best or allocative efficiency, there must be no loss of economic efficiency in terms of utility for consumers or producers.
The loss of overall welfare or the social surplus as a result of factors such as taxes or subsidies, price ceilings or floors, externalities, and monopoly pricing is known as "deadweight loss." It is the additional burden brought about by the loss of advantage to the trade's participants, who might be either producers, consumers, or the government. It is likely that the new equilibrium price that is determined for the transaction will be higher if a specific tax is imposed on the producer for each unit of the good he sells, and as a result, some weight of this will be placed on the consumer.
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Complete Question -
in the figure, as quantity of gloves increases from 0 units, to 1000 units, to 2000 units to 3000 units, the deadweight loss
