Government Wants to Maximize Its Tax Revenue and It Can

question 72

Multiple Choice

Government wants to maximize its tax revenue and it can only place a $2 per-unit tax on one of two goods. It should place the tax (on the production) of the good whose demand curve has the

• A)higher price elasticity of demand.
• B)lower price elasticity of demand.
• C)greater length.
• D)shorter length.

---

Definitions:

Feels Rested

The sensation or state of feeling refreshed and rejuvenated after a period of rest or sleep.

Northern Alaska

A geographic region at the northernmost part of the U.S. state of Alaska, known for its remote, cold, and arctic environment.

Increased Daylight Hours

A period in the year when the duration of daylight each day is longer, typically due to seasonal changes affecting sunrise and sunset times.

Sleep Disturbance

A disruption in the normal sleep pattern, which can include difficulties falling asleep, staying asleep, or experiencing restorative sleep, affecting overall health and well-being.