gasoline price. Hence, part of the tax credit is redundant and represents ‘rectangular’ deadweight costs that dwarf standard …, create, have no effect or have an ambiguous effect on rectangular deadweight costs. There are situations where corn subsidies … have been the sole cause of ethanol production (and therefore of rectangular deadweight costs), even with the tax credit …

corn. Price supports eliminate, create, have no effect or have an ambiguous effect on rectangular deadweight costs … effects of a tax credit. Net social costs of the tax credit averaged $683 million. Rectangular deadweight costs averaged $1 … supply curve is above the gasoline price. Hence, part of the tax credit is redundant and represents ‘rectangular’ deadweight …