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To Prevent Obesity,the Government May Establish a Tax on High

Question 18

Multiple Choice

To prevent obesity,the government may establish a tax on high caloric foods,such as twinkies.A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is


A) perfectly elastic.
B) perfectly inelastic.
C) more elastic than the supply curve.
D) both A and B.

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