The government of Bassaland is looking for new revenue sources. It is considering imposing an excise tax
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Question:
The government of Bassaland is looking for new revenue sources. It is considering imposing an excise tax on two goods: palm wine and diapers.
If the price elasticity of demand for the goods are -0.47 and -1.89 respectively, which good should it tax if the goal is to raise revenue?
If the government wants to tax only one good, which good should it tax if the goal is to discourage consumption?
50 words minimum.
Related Book For
Business Law Legal Environment Online Commerce Business Ethics and International Issues
ISBN: 978-0134004006
9th edition
Authors: Henry R. Cheeseman
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