Which of the followings is not true in case of deadweight loss of taxes ?
1
The deadweight loss of the tax is the extent to which the reduction in welfare exceeds the revenue raised
2
Deadweight loss is proportional to the square of the tax rate.
3
Deadweight loss is the tax-induced distorting of commodity taxation.
4
Deadweight loss of commodity taxation is inversely related to the elasticity of demand.