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When a government wants to increase tax revenue, they will often increase the sales tax on gasoline.

When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts. What might be the long run effect of raising the price of gas?

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When a government wants to increase tax revenue.doc

When a government wants to increase tax revenue, they will often increase the sales tax
on gasoline. Using price elasticity of demand, explain why the tax would be placed on
gasoline rather than,...

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