Governments tend to tax items with inelastic demand because
A)governments wish to avoid big rises in after-tax prices.
B)sellers pay most of the tax in these cases.
C)buyers pay most of the tax in these cases.
D)these goods yield the most tax revenues.
E)these goods are luxury goods.

Question

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The Answer of Governments tend to tax items with inelastic demand because
A)governments wish to avoid big rises in after-tax prices.
B)sellers pay most of the tax in these cases.
C)buyers pay most of the tax in these cases.
D)these goods yield the most tax revenues.
E)these goods are luxury goods.

Governments Tend to Tax Items with Inelastic Demand Because