The Laffer curve illustrates how taxes in markets with greater elasticities of demand compare to taxes in markets with smaller elasticities of supply.

Question

Quizplus · Accepted Answer

The Laffer curve illustrates the relationship between tax rates and the total tax revenue collected by governments, showing how changes in tax rates can influence economic activity and tax revenue, not the comparison of taxes in markets with different elasticities of demand or supply.

The Laffer Curve Illustrates How Taxes in Markets with Greater