If the Main Purpose of a Tax Is to Decrease

question 10

Multiple Choice

If the main purpose of a tax is to decrease the amount of a harmful activity,such as underage drinking,the government should impose it on harmful activities whose supply is _____ and demand is _____.

• A)elastic;elastic
• B)inelastic;inelastic
• C)elastic;inelastic
• D)inelastic;elastic

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