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A government wants to raise revenue by taxing tanning services. They ask you whether they will make more revenue by taxing the salon or by
A government wants to raise revenue by taxing tanning services. They ask you whether they will make more revenue by taxing the salon or by taxing customers. What would be the best advice? Group of answer choices a) Tax tanning salons if they have a high elasticity of supply. b) Tax tanning salons if they have a low elasticity of supply. c) Tax consumers if they have a high elasticity of demand. d) Tax consumers if they have a low elasticity of demand. e) Which group is taxed will not affect the amount of tax revenue collected
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