Assume That the Demand for Salt Is Relatively Inelastic and That

question 58

Multiple Choice

Assume that the demand for salt is relatively inelastic and that the demand for snowboards is relatively elastic.If a tax is levied on both goods,what is the deadweight loss for snowboards relative tothe deadweight loss for salt

• A)The loss of deadweight loss is greater for salt.
• B)The loss of deadweight loss is smaller for salt.
• C)The gain of deadweight loss is greater for salt.
• D)The gain of deadweight loss is smaller for salt.