If the government wants to raise taxes while generating the least amount of deadweight loss,it should raise taxes on a good with a

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When a good has a perfectly inelastic demand, it means that consumers have no other alternatives to turn to if the price of the good increases, and they will continue to buy it even if the price goes up. Therefore, raising taxes on such a good will not result in a significant decline in demand, and there will be little or no deadweight loss.

If the Government Wants to Raise Taxes While Generating the Least