Economics WAEC

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

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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