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If the Main Purpose of a Tax Is to Decrease

Question 79

Multiple Choice

If the main purpose of a tax is to decrease the amount of a harmful activity,such as underage drinking,the government should impose it on harmful activities whose supply is _____ and demand is _____.


A) elastic;elastic
B) inelastic;inelastic
C) elastic;inelastic
D) inelastic;elastic

Correct Answer:

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