Question

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 improved and tax revenue will be relatively small. The price elasticity of demand does not matter in this case.

Name: 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 at 22522
Uploaded: 2022-08-14T21:14:46-08:00
Duration: 2 min 26 s
Channel: Andrew Davis
Description: 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 at 22522

          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 improved and tax revenue will be relatively small. The price elasticity of demand does not matter in this case.

Added by Robert C.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Andrew Davis

08/14/2022

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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 improved and tax revenue will be relatively small. The price elasticity of demand does not matter in this case.