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Week Two Essay Answer question #4 on Chapter 4, page 100 of the text: "You are chairperson of a state tax commission responsible for establishing a program to raise new revenue through excise taxes. Why would elasticity of demand be important to you in determining the products on which the taxes should be levied?". In one to three pages, fully explain your answer in a way that shows your understanding of â€œelasticity of demand.â€?
Published on Dec 2, 2016