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Suppose the government imposes the same tax size on Coke and milk. Which of the following statements is correct, assuming Coke and milk's elasticity of
Suppose the government imposes the same tax size on Coke and milk. Which of the following statements is correct, assuming Coke and milk's elasticity of supply is the same? Question 23 Answer a. The demand for Coke is more elastic than milk, and thus the deadweight loss in Coke is smaller. b. The demand elasticity for Coke and milk is the same, and thus their deadweight losses are different. c. The demand for Coke is more elastic than milk, and thus the deadweight loss in Coke is larger. d. The demand for milk is more inelastic than Coke, and thus the deadweight loss in milk is larger
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