A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2024 · Q141 Mark
A product with infinite elasticity of supply has sales of 1000 units a week at a price of $1 per unit. Price elasticity of demand is 1.5 over the relevant range. The government imposes a tax of 10%. What will be the government's weekly tax revenue from this product?
A$15
B$85
C$100
D$150
✓ Correct answer
B: $85
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