If you want to reduce the inefficiency costs of taxation,you should devise taxes to fall on goods for which the supply is _____ and the demand is _____.

Question

Quizplus · Accepted Answer

Taxes on goods with inelastic supply and demand create less distortion in the market, leading to lower inefficiency costs, because consumers and producers are less responsive to price changes, thus minimizing the deadweight loss associated with taxation.

If You Want to Reduce the Inefficiency Costs of Taxation,you