Question

If the goal of a government entity is to raise funds by taxing a good or service, it is easier to raise revenue if the demand curve for the good/service is ____

          If the goal of a government entity is to raise funds by taxing a good or service, it is easier to raise revenue if the demand curve for the good/service is ____
        

Added by Charles R.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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If the goal of a government entity is to raise funds by taxing a good or service, it is easier to raise revenue if the demand curve for the good/service is ____
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Transcript

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00:01 So while seeing the question, let's put a move to the answer.
00:02 So let's see here that a specific tax will raise more tax revenue if the demand curve is in elastic.
00:55 And if the specific tax will raise less tax revenue if the demand curve is elastic.
02:01 So it is a specific tax will raise more tax revenue than the demand curve is in elastic...
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