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Goods like alcohol and cigarettes have inelastic demand and their consumption can impose costs on others. Which of the following are reasons for taxing these
Goods like alcohol and cigarettes have inelastic demand and their consumption can impose costs on others. Which of the following are reasons for taxing these goods at higher rates than other goods? Group of answer choices Because demand is inelastic, there will be higher dead weight loss per dollar of tax revenue.. Because demand is inelastic, there will be lower dead weight loss per dollar of tax revenue. Taxation brings external costs into the market, making the market less efficient. Taxation brings external costs into the market, making the market \more efficient
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