passwella.
Menu

WAEC Economics 2018 Question 39

Question 39

Public Finance

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

  1. A.perfectly price inelastic.
  2. B.price inelastic.
  3. C.price elastic.
  4. D.unitary elastic.
Show the answer and explanation

Answer: A (perfectly price inelastic.)

Explanation

If quantity bought does not change at all, the tax brings in the most revenue.