If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic

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“If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand.” What is the rationale for this statement?

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Microeconomics

ISBN: 9780538452861

10th Edition

Authors: Roger A. Arnold

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Question Posted: Nov 01, 2024 05:00 AM

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If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand. What is the rationale for this statement?
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If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand. What is the rationale for this statement?
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If government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic

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Microeconomics

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