If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most effective when the supply is ________ and the demand is ________. Question 8 options: elastic; elastic inelastic; inelastic elastic; inelastic inelastic; elastic

If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most effective when the supply is and the demand is . Question 8 options: elastic; elastic inelastic; inelastic elastic; inelastic inelastic; elastic

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 7SQ

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Question

If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most effective when the supply is ________ and the demand is ________.

Question 8 options:

	elastic; elastic
	inelastic; inelastic
	elastic; inelastic
	inelastic; elastic

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