Refer to the following figure to answer the following questions.
-According to the figure,which point(s)would see tax revenues decrease if the tax rate increased?

Question

Refer to the following figure to answer the following questions. 
-According to the figure,which point(s)would see tax revenues decrease if the tax rate increased?

Quizplus · Accepted Answer

Points B and C would see tax revenues decrease if the tax rate increased. Point A would see an increase in tax revenue due to the elastic nature of the demand for the good/service being taxed.

Refer to the Following Figure to Answer the Following Questions