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Imagine you are a government official aiming to generate more tax revenues. The first option is excise tax rate on elephant rides, which is a
Imagine you are a government official aiming to generate more tax revenues. The first option is excise tax rate on elephant rides, which is a good with elastic demand. Second option is to raise excise tax on alcohol, which is a good with inelastic demand. Which product generates more tax revenue based on the elasticity of demand for each good.
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