Home » Classroom » SS2 Economics Concept of Elasticity And Its Application Question

How can elasticity be used to help governments ... - SS2 Economics Concept of Elasticity And Its Application Question

How can elasticity be used to help governments make taxation decisions?

Ask EduPadi AI for a Detailed Answer

Governments can use elasticity to determine the likely impact of a tax on a product. If the elasticity of demand for a product is high, a tax on that product could significantly reduce demand and discourage consumers from purchasing the product.

Please share this, thanks:

#SS2 #SS2

Add your answer

Notice: Please post responsibly.

No responses