On which of the following goods would you expect the revenue generated from the imposition of a tax to be the greatest?
A)milk
B)gasoline
C)bread
D)a specific brand of beer
E)all beer

Question

Quizplus · Accepted Answer

Gasoline is a good with inelastic demand, meaning that buyers will still purchase it even if the price increases due to the tax. This results in a larger revenue generated from the tax.

On Which of the Following Goods Would You Expect the Revenue