Asked by
vidhya swami
on Dec 05, 2024
Verified
A higher tax rate is more likely to increase tax revenue if the price elasticity of demand is _____ and the price elasticity of supply is _____.
A) high;high
B) low;low
C) low;high
D) high;low
Price Elasticity
A measure of how much the demand or supply of a product changes in response to a price change.
Increase Tax Revenue
Strategies or activities undertaken by a government to enhance the amount of money it collects from taxes.
- Analyze the nexus between tax rates and tax revenue considering the concept of elasticity.
Verified Answer
JA
Learning Objectives
- Analyze the nexus between tax rates and tax revenue considering the concept of elasticity.