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:

Motion to Dismiss

A legal filing requesting that a case be thrown out or dismissed without further hearing, often due to lack of legal basis or jurisdiction.

Certiorari Jurisdiction

A legal principle where a higher court reviews decisions and outcomes of lower courts.

Summary Judgment

A method of reaching a judgment in a civil case before trial. The standard for granting a motion for summary judgment is that there be no significant issue of material fact and that the moving party be entitled to judgment as a matter of law.

Material Fact

A fact that would influence a reasonable person's decision-making process in a particular context, such as in contracts or legal decisions.