If the government wanted a tax to raise a great deal of revenue but not burden consumers much,it would want to tax an industry with:

Question

Quizplus · Accepted Answer

An inelastic supply and elastic demand curve means that the quantity supplied does not change much in response to price changes, while the quantity demanded changes significantly. This means that a tax on this industry would raise a great deal of revenue without burdening consumers much, as the consumers would bear a relatively small portion of the tax burden.

If the Government Wanted a Tax to Raise a Great