In spite of the stated goal of discouraging behavior,if a sumptuary tax is applied on _____,behavior will not change very much.
A)a good with elastic demand
B)a good with inelastic demand
C)income
D)wealth

Question

Quizplus · Accepted Answer

A good with inelastic demand means that consumers are not very responsive to price changes and will continue to purchase the good even if its price increases due to the sumptuary tax. Therefore, the desired behavior change may not occur as consumers will still be willing to purchase the good despite the tax.

In Spite of the Stated Goal of Discouraging Behavior,if a Sumptuary