Use the table below to answer the following questions.
Table 6.3.2

-Refer to Table 6.3.2.You are in the business of producing and selling hamburgers,French fries,pizza,and ice cream.The mayor of your city plans to impose a sales tax on one of these products.Based on the elasticities in the table,on which of these goods would your customers least like to be taxed?
A)hamburgers
B)French fries
C)pizza
D)ice cream
E)Your customers are indifferent about which good is taxed.

Question

Use the table below to answer the following questions.
Table 6.3.2
 
-Refer to Table 6.3.2.You are in the business of producing and selling hamburgers,French fries,pizza,and ice cream.The mayor of your city plans to impose a sales tax on one of these products.Based on the elasticities in the table,on which of these goods would your customers least like to be taxed?
A)hamburgers 
B)French fries 
C)pizza 
D)ice cream 
E)Your customers are indifferent about which good is taxed.

Quizplus · Accepted Answer

Customers would least like to be taxed on pizza because it likely has the highest price elasticity of demand, meaning a tax would significantly reduce quantity demanded, affecting consumer preference the most.

Use the Table Below to Answer the Following Questions