Your Local Government Needs to Increase Tax Revenue

Your local government needs to increase tax revenue. To increase tax revenue it can either increase the property tax on commercial property or increase the property tax on all property. The government wants to impose the smallest excess burden possible. Because the demand for commercial property is ________ elastic than the demand for all property, you recommend that local government increase the property tax on ________ property.

A) more; all
B) less; all
C) less; commercial
D) more; commercial