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23 May, 15:30

The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a. An elastic demand b. Unitary elastic demand curve c. An inelastic demand d. A demand curve that is upward sloping

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  1. 23 May, 15:48
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    option (a) An elastic demand

    Explanation:

    This is when taxes are reduced on fast food, the prices will decrease and people will patronize more, and with this the demand is elastic, people would consume more which increases the revenue.
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