Assuming That the Demand for Diamonds Is More Elastic Than

Multiple Choice

Assuming that the demand for diamonds is more elastic than the demand for gasoline,what happens to the quantity of diamonds purchased relative to the quantity of gasoline purchased if the same percentage tax is levied on both products

A) The decrease in the quantity of diamonds is greater than the decrease in gasoline.
B) The decrease in the quantity of diamonds is less than the decrease in gasoline.
C) The increase in the quantity of diamonds is greater than the decrease in gasoline.
D) The increase in the quantity of diamonds is less than the decrease in gasoline.