Multiple Choice
Government wants to maximize its tax revenue and it can only place a $2 per-unit tax on one of two goods. It should place the tax (on the production) of the good whose demand curve has the
A) higher price elasticity of demand.
B) lower price elasticity of demand.
C) greater length.
D) shorter length.
E) a or c
Correct Answer:
Verified
Correct Answer:
Verified
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