If the government imposes an excise tax on a good, it will collect the most tax revenues from it if the demand for the good is

A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.

Excise Tax

A tax levied on the production of a specific product or on the quantity of the product purchased.

Tax Revenues

The income that is gained by governments through taxation, an important source of revenue for government expenditures.

Inelastic Demand

A situation in which the demand for a product does not significantly change with a change in its price.