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'Assume That the Demand for Entertainment Is More Elastic Than

Question 16

Multiple Choice

'Assume that the demand for entertainment is more elastic than the demand for petrol'.According to this statement, compared to the decline in purchases from a similar percentage tax on petrol, we would expect that a tax on entertainment will cause the quantity of entertainment purchased to decline:


A) more
B) less
C) the same
D) neither more nor less

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