A government raises €100m through a €0.05 tax on widgets. It raises another €100m through a €0.10 tax on gadgets. It decides to eliminate the tax on gadgets and double the tax on widgets. Would it raise more, les or the same amount of money in tax revenue? Explain your answer.

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The Answer of A government raises €100m through a €0.05 tax on widgets. It raises another €100m through a €0.10 tax on gadgets. It decides to eliminate the tax on gadgets and double the tax on widgets. Would it raise more, les or the same amount of money in tax revenue? Explain your answer.

A Government Raises €100m Through a €0