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Harberger's Triangle - Wikipedia, the free encyclopedia

Harberger's Triangle

From Wikipedia, the free encyclopedia

Harberger's Triangle refers to the dead weight loss associated with government intervention in a perfect market as in minimum wages, price caps, taxes and trade tariffs generally attributed to Arnold Harberger. The area represented by the triangle comes from the intersection of the supply and demand curves being cut short so that consumer surplus and producer surplus are also cut short. The loss of such surplus, not recouped by say tax revenues is the dead weight loss.

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