There is still some lost surplus that isn't accounted for by tax revenues. We show this to the right as the brown shaded area.

    Unlike the surplus collected in the form of tax revenue, this surplus is simply lost. It is lost and can't be recovered because of the reduction in sales in this market. This lost surplus is usually referred to as deadweight loss or excess burden. In this market the value of the deadweight loss is $40

    Deadweight loss or excess burden can be thought of as the economic cost of the tax, or that portion of the surplus lost by the tax that isn't recovered in the form of tax revenues.

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