in order to increase revenue, government should tax commodities for which demand is? 

samson394978

1 year ago

the ans is B my school , a demand is said to be price inelastic if an increase in price causes a small decrease in quantity demand. the incidence of tax of a good with a price inelastic is being shared by the producer and consumer but greater burden is borne by the consumer.
to maximize the revenue of the seller the demand must be price inelastic