If the federal government imposed a 10 percent excise tax on yachts costing more than $100,000. This tax would: fail to bring in the expected amount of tax revenue because the demand for yachts is more price elastic than the government estimated. bring in more tax revenue than expected because the demand for yachts is less price elastic than the government estimates. bring about an increase in the demand for yachts and stimulate employment in the boat-building industry. fail to bring in the expected amount of tax revenue because the demand for yachts is less income elastic than the government estimates.
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