If the government is interested in raising the highest revenue from a tax system, then for any two commodities
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- A It is better to tax one whose demand is more elastic
- B It is better to tax one whose demand is more inelastic
- C Revenue will be the same from both commodities
- D It is not possible to say which will yield higher revenue
- E Government cannot make much revenue from taxing commodities
Correct Answer: Option B
Explanation:
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