Question

the Indian government imposed heavy taxes on commodity to reduce its consumption by the public such taxes will decrease the demand of the commodity only when ​

Answer 1

Answer:

heya.. elastic demand

I hope it's help uh

Answer 2

The demand for the commodity will decrease when there is highly inelasticity

• When the change in the price is much higher than the change in demand, it forms an inelastic demand curve. Thus if the government wants to reduce the consumption of certain products among the customers, ex- cigarettes, then they will increase the prices through heavy tax rates. As a result, the public will be unwilling to buy these commodities and the demand will fall for such products.
• The Indian government wants to curb such consumption as they are harmful to society. Thus by increasing the tax rates on such products, it aims at decreasing the demand for these commodities. High tax rates will increase the ultimate price. With such high prices, only fewer consumers will buy them.

Thus, the demand will fall.

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