If the elasticity of demand is _____ and the elasticity of supply is _____,tax revenue is likely to decrease if the tax rate is increased.

A) 3.3;2.1
B) 3.3;0.5
C) 0.2;2.1
D) 0.2;0.5

Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively measured as the percentage change in quantity demanded relative to a percentage change in price.

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in its price.

Tax Revenue

It's the income that is collected by governments through taxation.