The Demand for Bread Is Less Elastic Than the Demand

question 193

True/False

The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a larger deadweight loss than will the same tax on donuts, other things equal.

---

Definitions:

Sexually Transmitted Diseases

Infectious diseases primarily spread through sexual contact.

Symptoms

Signs or indicators that something is wrong with an organism, often related to disease or malfunction.

Bulbourethral Glands

Small glands located near the base of the penis in male mammals that produce a pre-ejaculate fluid to lubricate the urethra.

Prostaglandins

are lipid compounds that perform a variety of hormone-like actions in animals, including inflammation regulation and smooth muscle contraction.