In Russia, the government sometimes levied heavy per-unit taxes on suppliers of vodka as a public health measure and also to raise revenues. In the United States, some state governments have attempted to do the same with cigarettes. Why are these policies contradictory?

If the Demand is very elastic, public health will be ____________________ and tax revenue will be relatively ___________________

a. Improved; large

b. worse; large

c. improved; small

d. worse; small

e. The price elasticity of demand does not matter in this case.