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Elasticity 1Elasticity of DemandAshley DyalECO 100Ms. TurnerJanuary 13, 2010
Elasticity 2Elasticity of DemandIf I were a chair person on a tax commission that was responsible for establishing a program to raise new revenue through excise taxes I would think elasticity of demand would be important in my decision because this allows for the history of many products or services to be studied. When a product or service is studied it would make it to where better long term revenue would be seen. Since elasticity of demand is like an ace bandage or a rubber band of a service or product life and quantity demand (Brue & McConnell, 2010).When we study the history of a product or service we are able to find the fluctuation in it’s past and possibly predict the fluctuations in the future of the product or service. This would allow for the most consistent revenue to be had of the particular levied excise taxes. With the study of the history of the product or service would allow