Assume that the demand for insulin is relatively more inelastic than the demand for aspirin.All else equal,a tax on aspirin
A) will lead to a larger deadweight loss than a tax on insulin.
B) will have the same deadweight loss as a tax on insulin.
C) will lead to a smaller change in quantity demanded than a tax on insulin.
D) Both A and C are correct.
Correct Answer:
Verified
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