A deadweight loss results from the imposition of a tax on a good because the tax

A) induces the government to increase its expenditures.
B) reduces the quantity of exchanges between buyers and sellers.
C) causes a disequilibrium in the market.
D) imposes a loss on buyers that is greater than the loss to sellers.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Tax Imposition

The act of placing a financial charge or levy upon a taxpayer by a governmental organization.

Buyers

Individuals or entities that purchase goods or services from sellers in exchange for money or other valuable considerations.