Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

governments that are interested in minimizing the efficiency costs of taxation should only tax goods where

Sagot :

goodencaleb

Answer:

Governments that are interested in minimizing the efficiency costs of taxation should only tax goods where demand or supply, or both, are relatively inelastic.

Explanation:

hope this helps

H1storyBuff

If a government is interested in minimizing the efficiency cost of taxation, they should only tax goods where the demand, supply, or both are relatively inelastic. If the price is elastic, then the tax could change the efficiency of the cost. Remember, prices that are inelastic are harder to change, while elastic prices are easier to effect through things such as taxes.

I hope this helps! :)

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.