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If the Government Imposes a Tax on Snack Food, Which

Question 50

Multiple Choice

If the government imposes a tax on snack food, which has a higher elasticity of demand than non-snack food, then the deadweight loss from the tax


A) is zero.
B) is larger for snack food than it would be if the same tax were imposed on non-snack food.
C) is the same for snack food as it would be if the same tax were imposed on non-snack food.
D) is lower for snack food than it would be if the same tax were imposed on non-snack food.
E) cannot be determined.

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