Determining the long run effect of raising the price of gas


When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts. What might be the long run effect of raising the price of gas?

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Determining the long run effect of raising the price of gas
Reference No:- TGS068961

Expected delivery within 24 Hours