Which Would Be a Better Source of Tax Revenue for the Government

question 124

Essay

Which would be a better source of tax revenue for the government, a good with elastic or a good with an inelastic demand? Explain your reasoning.

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Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Birthrate

The ratio of total live births to the population in a specified area or period, usually calculated per thousand inhabitants per year.

Demographic Transition

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Demographic Transition

A model describing the transformation of birth and death rates from high to low levels in a society over time, typically associated with economic development.