Suppose That Policymakers Are Considering Placing a Tax on Either

Multiple Choice

Suppose that policymakers are considering placing a tax on either of two markets.In Market A,the tax will have a significant effect on the price consumers pay,but it will not affect equilibrium quantity very much.In Market B,the same tax will have only a small effect on the price consumers pay,but it will have a large effect on the equilibrium quantity.In which market will the tax have a larger deadweight loss

A) market A because the demand of the market is relatively inelastic
B) market B because the demand of the market is relatively elastic
C) market A because the demand of the market is relatively elastic
D) market B because the demand of the market is relatively inelastic