Good a Has a Price Elasticity of Demand of

question 62

Multiple Choice

Good A has a price elasticity of demand of .27, while good B has a price elasticity of demand of 2.9. To raise the most tax revenue, the government should:

• A) place a unit tax on good A.
• B) place a unit tax on good B.
• C) raise the price elasticity of demand for good A.
• D) subsidize the production of good B.

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Definitions:

Single Promise

A commitment or agreement involving one clear and unambiguous obligation or stipulation.

Promissory Estoppel

Promissory Estoppel is a legal principle that prevents a person from going back on a promise, even if it wasn't formally made as a contract, provided others have relied on the promise to their detriment.

Property Manager

An individual or company responsible for the maintenance and operation of real estate properties, acting on behalf of the property owner.

Financial Difficulties

refer to situations where an individual or entity struggles to meet financial obligations due to insufficient funds.