The Demand for Chicken Wings Is More Elastic Than the Demand

question 60

Multiple Choice

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

• A)chicken wings than in the market for razor blades because the quantity of chicken wings would fall by more than the quantity of razor blades.
• B)chicken wings than in the market for razor blades because the quantity of razor blades would fall by more than the quantity of chicken wings.
• C)razor blades than in the market for chicken wings because the quantity of chicken wings would fall by more than the quantity of razor blades.
• D)razor blades than in the market for chicken wings because the quantity of razor blades would fall by more than the quantity of chicken wings.

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Definitions:

Irrevocable Living Trust

A type of trust that cannot be modified or terminated without the consent of the beneficiary, typically used for estate planning to avoid probate and reduce taxes.

Legal Title

The formal right of ownership to property, recognized and protected by law.

Administer

To manage or direct the execution of affairs, the application of substances, or the carrying out of certain actions.

Probate

The legal process of validating a will and distributing a deceased person's assets under supervision.