If the demand for a good is price elastic, then :
A) a higher per-unit sales tax will generate more tax revenue.
B) a higher per-unit sales tax will generate less tax revenue.
C) changes in total per-unit sales tax revenue brought about by a price change go in the same direction as the price change.
D) none of the above is true.
Correct Answer:
Verified
Q74: If total revenue goes up when price
Q85: If demand is unit price elastic, a
Q87: If demand is price elastic, a change
Q90: If a 5 percent reduction in the
Q91: A unit price elastic demand exists if
Q92: In examining the concept of price elasticity
Q93: The demand for agricultural output is price
Q95: If along a given segment of a
Q96: If total revenue goes down when price
Q99: Demand is price inelastic when:
A) price falls
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents