Question

Every one is interested in increasing the income. the government can increase revenue ( income) by raising the tax. However if the government raise tax on some goods, the consumer with rational behaviour decline the consumption of that particular product. suggest both graphically and logically how the government can raise the level of income by keeping in mind the rational behaviour of rational consumer?​

Answer 1

Answer:

sorry i don't know the answer of this question

Answer 2

Explanation:

In order to increase the tax revenue, one step the government can do is increase the sales tax on overall bill. If tax is increased on particular product, then the rational buyer might go for alternate option, so instead of addressing specific items, governemnt simply focus on overall amount of all items and that add a particular tax to it.

Adding taxes is not only a solution, governemnt should increase its exports and redce imports by encouraging people to buy local products