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Point Price Quantity Total Elasticity In Dollars Demanded Revenue A 18 56 B 20 52 C 22 48 $1,056 24 44 26 40 -1.42 28 36 4 - One of the things brought up in the text was the idea that if demand is fairly elastic there will be a large decrease in quantity to a price increase. In the early 1990's the government attempted to raise taxes on power boats. As it turned out while many felt it was justified to tax a luxury item; the result was large losses of jobs in the powerboat industry. Please read the following articles and specifically as they relate to the result of the power boat tax on the demand for boats? Boat Luxury Tax New York Times Luxury Tax CPA Journal a) What does this tell you about the elasticity for demand for powerboats? b) Consider the job losses in Florida, did the tax have unintended consequences? c) If you knew the elasticity of demand for powerboats would you advise for or against the tax? Please explain why