The concept of elasticity is demonstrated if, as per capita income grows, revenues also increase without increases in the tax rate.

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The concept of elasticity refers to how a change in one variable affects another variable. In this case, if as per capita income grows, revenues also increase without increases in the tax rate, this indicates that the tax system is elastic, meaning that it is able to respond to changes in economic conditions without requiring changes in tax rates.

The Concept of Elasticity Is Demonstrated If, as Per Capita