Question: Chapter 4: Elasticity Why is the demand for a luxury generally more elastic (or less inelastic) than the demand for a necessity? The government is

Chapter 4: Elasticity Why is the demand for a luxury generally more elastic (or less inelastic) than the demand for a necessity? The government is considering taxing purchases of either good A or good B to raise revenue. Demand for good A is price elastic and the demand for good B is price inelastic. Explain which good the government should tax in order to raise revenue

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