Suppose the state of california needs to increase tax


Suppose the state of California needs to increase tax revenue. The government is considering raising the per-unit tax on consumption good in order to generate more tax revenue. If they choose between a good that is relatively more demand elastic or relatively more demand inelastic, which would be more likely to generate more tax revenue? Assume that supply curve has the same elasticity for both goods.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Suppose the state of california needs to increase tax
Reference No:- TGS0949448

Expected delivery within 24 Hours