The Demand for Milk Is More Elastic Than the Demand

question 341

Multiple Choice

The demand for milk is more elastic than the demand for water.Suppose the government levies an equivalent tax on milk and water.The deadweight loss would be larger in the market for

• A) milk than water because the quantity of milk would fall by more than the quantity of water.
• B) milk than water because the quantity of water would fall by more than the quantity of milk.
• C) water than milk because the quantity of milk would fall by more than the quantity of water.
• D) water than milk because the quantity of water would fall by more than the quantity of milk.

---

Definitions:

Quasi Contract

A legal concept where a court enforces an obligation between two parties who have not agreed to an actual contract, to prevent one party from being unjustly enriched.

Oral Contracts

Agreements between parties that are made verbally and not memorialized in writing, yet are still legally binding in many cases.

Reformation

A court-ordered correction of a written contract so that it reflects the true intentions of the parties.

Erroneous Legal Description

A mistake or inaccuracy in the written account of the boundaries or details of a property in legal documents.