The government wants to increase its tax revenue and plans to ...

[tth]

The government wants to increase its tax revenue and plans to implement an additional sales tax. The government will raise more tax revenue if it taxes a good with an ________ rather than a good with an ________.
 
  A) inelastic demand; elastic demand
  B) elastic demand; inelastic demand
  C) elastic supply; inelastic supply
  D) None of the above answers is correct.

Question 2

In the above figure, if the price is 12 per unit, how many units will a profit maximizing perfectly competitive firm produce?
 
  A) 0
  B) 20
  C) 30
  D) 35

[Ddddd]

Answer to Question 1

A

Answer to Question 2

C

[tth]

Thanks for the timely response, appreciate it

[Liddy]

Wow, this really help