in order to increase revenue, government should tax commodities for which demand is?
ECONOMICS
WAEC 2018
in order to increase revenue, government should tax commodities for which demand is?
- A. perfectly price inelastic
- B. price inelastic
- C. price elastic
- D. unitary elastic
Correct Answer: A. perfectly price inelastic
Explanation
An economic situation in which the price of a product will have no effect on the supply. In a perfectly inelastic situation regardless of the amount of a product on the market, the price of the product remains the same.
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