Answered: Governments impose excise taxes on…

Governments impose excise taxes on goods that have inelastic demand, such as cigarettes, more often than in other cases. Why?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 14QP

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Governments impose excise taxes on goods that have inelastic demand, such as
cigarettes, more often than in other cases. Why?

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