The more ________ the demand is for a product, the ________ tax revenue that will be raised by taxing the product.A) elastic; moreB) inelastic; moreC) inelastic; lessD) Tax revenues are unrelated to a product's price elasticity of demand.

Question

The more ________ the demand is for a product, the ________ tax revenue that will be raised by taxing the product.A)  elastic; moreB)  inelastic; moreC)  inelastic; lessD)  Tax revenues are unrelated to a product's price elasticity of demand.

Mahlatse Hendreecah · Accepted Answer

Final Answer : B, Explanation :  Inelastic demand means that consumers are less sensitive to price changes, so when a product with inelastic demand is taxed, consumers are likely to continue purchasing it despite the price increase, leading to higher tax revenue.

The more the demand is for a product, the tax revenue that will be raised by taxing the product.

A) elastic; more
B) inelastic; more
C) inelastic; less
D) Tax revenues are unrelated to a product's price elasticity of demand.

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