If a state government wants to collect the maximum tax revenue from a unit excise tax, which of the following would they tax?

Question

Quizplus · Accepted Answer

Cigarettes are generally more expensive than other options listed and are also subject to high demand, making them a strong candidate for collecting maximum tax revenue through an excise tax. The other options, such as beef hamburgers and hotdogs, are typically lower-priced items and may not generate as much revenue through an excise tax. Luxury cars may be a viable option for high tax revenue, but the market for these items is typically smaller and the tax rate would need to be significantly higher to generate substantial revenue.

If a State Government Wants to Collect the Maximum Tax