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.
Correct Answer:
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