How to increase sales taxes to bring in badly needed revenue

Reference no: EM13185980

Governor Brown, from the state of Taxafornia, wants to increase sales taxes to bring in badly needed revenue to support state operations. He is looking at taxing various goods and services. Will the state tax revenue be greater if the state imposes a sales tax on goods where the price elasticity of demand = .9, or 1.5?

Reference no: EM13185980

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