In order to increase revenue, government should tax commo...
In order to increase revenue, government should tax commodities for which demand is
Perfectly price inelastic
Price inelastic
Price elastic
Unitary elastic
Correct answer is B
For government to generate more revenue, tax on commodities should be price inelastic. Inelastic means when tax is imposed, consumers do not react to tax i.e more of the goods are demanded.
In a perfectly competitive market, the firm is in long-run equilibrium at the output where ...
A balance budget is defined as a condition of ...
One of the internal economies of large scale production is ...
The central bank controls the activities of other banks by all but one of the following ...
The relationship between the tax rate and income which is relevant to progressive tax is shown ...
The Economic Commission for Africa was set up by the________ ...
The largest component of national income in developing countries consist of ...
The demand curve for a commodity is downward sloping because the consumer will pay ...