Answer: b) Supply is inelastic and demand is inelastic.
Explanation: Dead-weight loss is the loss in total surplus when a tax is imposed on a good which restricts demand and supply from balancing. When both the demand and the supply curves are inelastic, the effect of a tax will be lead to a small change in the quantity being traded in the market. Thus, the equilibrium quantity at the taxed price will not fall much and the dead weight loss will therefore, be smaller.
Hello M5irenflorevert, I would say bread because it is the most perishable food on that list. Even after a few days it can get crusty and nasty. ~Naterator Please Thank If This Helped <3
