If the Demand for a Good Is Price Elastic in Comparison

Multiple Choice

If the demand for a good is price elastic in comparison to one that is price inelastic, then:

A) a higher per-unit sales tax will generate more tax revenue.
B) a higher per-unit sales tax will generate less tax revenue.
C) changes in total per-unit sales tax revenue brought about by a price change go in the same direction as the price change.
D) none of the above is true.