Suppose the government applies a specific tax to a good where the demand elasticity, ∊ is -1,2 and the supply elasticity, n is 1.3
This good would not be an ideal good for the government to tax since demand is
A. elastic and would raise much revenue.
B. elastic and would not raise much revenue.
C. inelastic and would not raise much revenue,
D. inelastic and would raise much revenue.
