Economics · Public Finance - Taxation

If the elasticity of demand is low (inelastic), what should be done to tax rates?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Halve them
2Keep them stable
3Increase them✓
4Decrease them

Correct answer

Increase them

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If the elasticity of demand is low (inelastic), what should be done to tax rates?

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