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Who is more likely to object to a proposed 1 percentage point increase in the city sales taxthe owner of a local liquor store or
Who is more likely to object to a proposed 1 percentage point increase in the city sales taxthe owner of a local liquor store or the owner of a local video rental store? Why?
Hint: Think about it this way if I am elastic/inelastic would I be more or less concerned about changes in price that may be brought on by a change of tax. Given this logic which is likely to be more inelastic/elastic out of these two products/services and thus which is likely to be more concerned by an increase in price?
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