A state government seeking to increase its excise-tax revenues is more likely to increase the tax rate on items with elastic demand.

Question

Quizplus · Accepted Answer

A state government seeking to increase its excise-tax revenues is more likely to increase the tax rate on items with inelastic demand because consumers are less sensitive to price changes for these goods, ensuring more stable revenue increases.

A State Government Seeking to Increase Its Excise-Tax Revenues Is