Economy, asked by moulikamouli315, 5 hours ago

what happens to the tax revenue when the tax on a good increase gradually

Answers

Answered by bawasohani
0

Explanation:

As the government increases the tax rate, the revenue also increases until T*. Beyond point T*, if the tax rate is increased, revenue starts to fall. In short, attempts to tax above a certain level are counterproductive and actually result in less total tax revenue.

Hope You Understand

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