Proposals to increase an excise tax usually focus on
A) products with price elastic demand.
B) products with price inelastic demand.
C) high-value products.
D) products with many substitutes.

Question

Quizplus · Accepted Answer

Proposals to increase an excise tax typically focus on products with price inelastic demand because consumers are less sensitive to price changes for these goods, ensuring steady tax revenue despite the price increase.

Proposals to Increase an Excise Tax Usually Focus on