The Demand for Potted Plants Is More Elastic Than the Demand

question 38

Multiple Choice

The demand for potted plants is more elastic than the demand for wallpaper.Suppose the government levies an equivalent tax on potted plants and wallpaper.The deadweight loss would be larger in the market for

• A) potted plants than in the market for wallpaper because the quantity of potted plants would fall by more than the quantity of wallpaper.
• B) potted plants than in the market for wallpaper because the quantity of wallpaper would fall by more than the quantity of potted plants.
• C) wallpaper than in the market for potted plants because the quantity of potted plants would fall by more than the quantity of wallpaper.
• D) wallpaper than in the market for potted plants because the quantity of wallpaper would fall by more than the quantity of potted plants.

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Definitions:

Generativity

A concern for establishing and guiding the next generation, often expressed through parenting, teaching, and contributing to society.

Self-Absorption

An excessive preoccupation with oneself and one's own feelings, interests, or well-being, often neglecting others.

Secondary Sexual Characteristics

The physical traits that emerge during puberty which are not directly involved in reproduction but distinguish the two sexes, such as breast development in females and facial hair in males.

Primary Sexual Characteristics

The biological and physical characteristics present at birth that are directly involved in reproduction, such as the ovaries in females and testes in males.