Explain why excise taxes are more effective at raising tax, Business Economics

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Explain why excise taxes are more effective at raising tax

Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher excise taxes?

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Business Economics: Explain why excise taxes are more effective at raising tax

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Business Economics: Explain why excise taxes are more effective at raising tax

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