If government's goal is to alter people's behavior through taxation, then taxing goods with relatively elastic demand and supply would be most effective.
Question
Solution 1
The statement is not entirely correct. If a government's goal is to alter people's behavior through taxation, taxing goods with relatively inelastic demand and supply would be more effective.
Here's why:
- Elasticity of demand refers to how sensitive the quantity demanded of a good is to a chang Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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