A higher rate is most likely to decrease the amount of revenue that the government collects from an excise tax if
A.demand and supply are both very elastic.
B.demand is very elastic and supply is very inelastic.
C.demand is very inelastic and supply is very elastic.
D.demand and supply are both very inelastic.

Question

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The Answer of A higher rate is most likely to decrease the amount of revenue that the government collects from an excise tax if
A.demand and supply are both very elastic.
B.demand is very elastic and supply is very inelastic.
C.demand is very inelastic and supply is very elastic.
D.demand and supply are both very inelastic.

A Higher Rate Is Most Likely to Decrease the Amount