In order to increase revenue, the government should tax commodities for which demand is?

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A. perfectly price inelastic
B. price inelastic
C. price elastic
D. unitary elastic

Correct Answer: Option A

A. perfectly price inelastic

Explanation

An economic situation in which the price of a product will have no effect on the supply. In a perfectly inelastic situation regardless of the amount of a product on the market, the price of the product remains the same.

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