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:

Stereotype

A fixed, overgeneralized belief about a particular group or class of people, often simplifying complex realities and contributing to prejudiced attitudes and behaviors.

Math and Science

Academic disciplines that focus on understanding and explaining the natural world through mathematical models and scientific investigation.

Prejudice

Preconceived opinion that is not based on reason or actual experience; bias, often towards an individual or group.

Negative Attitude

A predisposition to perceive, interpret, or act towards a particular aspect of one’s environment in an unfavorable or detrimental manner.