The government will obtain the most revenue from a tax imposed on the sale of liquor when the demand for liquor is

Name: The government will obtain the most revenue from a tax imposed on the sale of liquor when the demand for liquor is
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Question

Quizplus · Accepted Answer

When demand is highly inelastic, consumers are less sensitive to price changes, meaning they will continue to buy liquor even if the price increases due to a tax. This results in higher revenue from the tax for the government.

The Government Will Obtain the Most Revenue from a Tax