Consumption loss (消费损失 xiāo fèi sǔn shī), or consumption distortion loss (消费扭曲损失 xiāo fèi niǔ qū sǔn shī) is the loss caused by the reduction of demand due to increasing tariff in domestic market price. 消费 as in consumer (消费者 xiāo fèi zhě; 者, people, often in the form of “-ist” or “-er”).
Part 1: Breakdown of Words
- “Consumption” (消费 xiāo fèi) derives from:
- “Loss” (损失 sǔn shī) as in “deadweight loss” (无谓损失 wú wèi sǔn shī), or “Economic loss” (经济损失 jīng jǐ sǔn shī).