Home / Aptitude Tests / Economics / If the government is...

If the government is interested in raising the highest re...

If the government is interested in raising the highest revenue from a tax system, then for any two commodities

A.

It is better to tax one whose demand is more elastic

B.

It is better to tax one whose demand is more inelastic

C.

Revenue will be the same from both commodities

D.

It is not possible to say which will yield higher revenue

E.

Government cannot make much revenue from taxing commodities

Correct answer is B

No explanation has been provided for this answer.