When a gobernment wants to increase tax revenue they will, Ask an Expert

Economics

When a gobernment wants to increase tax revenue, they will often increase the sales tax on gasoline. Using the price eleasticity of demand, describe why the tax would be placed on gasoline rather than, say yachts. What might be the long run effect of raising the price of gas?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M964793

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