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If the Government Wanted a Tax to Reduce the Quantity

Question 61

Multiple Choice

If the government wanted a tax to reduce the quantity exchanged a large amount but not raise much in tax revenue, it would want to tax an industry with


A) ​elastic supply and demand curves.
B) ​inelastic supply and demand curves.
C) ​inelastic supply and elastic demand.
D) ​elastic supply and inelastic demand.

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