1. Why might revenues generated from the tax fall short of expectations?2. Do you think that Philadelphia should or shouldn't have adopted the tax to fund pre-K education? Support your brief argument witheconomic concepts covered in the course.3. Suppose a government wants to use tax policy to persuade people to not consume certain products or services. Suppose, thegovernment has limited resources and can only enforce (or collect) a limited number of taxes. Should that government target goods orservices that have an elastic or inelastic price elasticity of demand (ED)? Why?4. Suppose the goal of a government is to raise as much money as possible to fund governmental services. Should the government targetgoods and services that have an inelastic or elastic ED? Why?

1. We all have desires and needs. However, current incomes may not be sufficient to meet all of the…

Answered: 1. Why might revenues generated from…

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Economics

1. Why might revenues generated from the tax fall short of expectations?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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