A government raises R100m through a R0.05 tax on widgets. It raises another R100m through a R0.10 tax on gadgets. It decides to eliminate the tax on gadgets and double the tax on widgets. Would it raise more, less or the same amount of money in tax revenue? Explain your answer.

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The Answer of A government raises R100m through a R0.05 tax on widgets. It raises another R100m through a R0.10 tax on gadgets. It decides to eliminate the tax on gadgets and double the tax on widgets. Would it raise more, less or the same amount of money in tax revenue? Explain your answer.

A Government Raises R100m Through a R0