In which of the following cases will an increase in the tax rate most likely decrease tax revenue?
A.The elasticity of demand is 3.3 and the elasticity of supply is 2.1.
B.The elasticity of demand is 3.3 and the elasticity of supply is 0.5.
C.The elasticity of demand is 0.2 and the elasticity of supply is 2.1.
D.The elasticity of demand is 0.2 and the elasticity of supply is 0.5.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q27: If demand is perfectly inelastic and the
Q59: Determining who actually pays the extra cost
Q61: When the government imposes an excise tax
Q62: If the government decides to impose a
Q63: If the government removed the excise tax
Q65: Excise taxes that raise the most revenue
Q66: A higher tax rate is more likely
Q67: If the United States removed all excise
Q68: Figure: The Shrimp Market
(Figure: The Shrimp Market)
Q69: The burden of a tax system comes
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