Assume That the Demand for Fries Is Relatively Inelastic and That

question 13

Multiple Choice

Assume that the demand for fries is relatively inelastic and that the demand for poutine is relatively elastic.If the same percentage tax were placed on both goods,the tax on which product would create a larger deadweight loss

• A)fries, if the supply of the fries is also relatively inelastic
• B)poutine, if the supply of the poutine is also relatively elastic
• C)fries, if the supply of the fries is relatively elastic
• D)poutine, if the supply of the poutine is relatively inelastic

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Definitions:

Dog Biscuit

A hard, baked, nutritionally balanced treat made specifically for dogs' consumption.

Behaviourism

A field of psychology that focuses on observable behaviors and disregards internal processes such as thoughts and emotions.

Psychological Perspective

An approach in psychology focusing on the mental processes and behaviors of individuals, encompassing various theories and methodologies.

Behaviourism

An approach in psychology focusing on observable behaviors, and discounting mental activities.