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Assume That the Demand for Fries Is Relatively Inelastic and That

Question 13

Multiple Choice

Assume that the demand for fries is relatively inelastic and that the demand for poutine is relatively elastic.If the same percentage tax were placed on both goods,the tax on which product would create a larger deadweight loss


A) fries, if the supply of the fries is also relatively inelastic
B) poutine, if the supply of the poutine is also relatively elastic
C) fries, if the supply of the fries is relatively elastic
D) poutine, if the supply of the poutine is relatively inelastic

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