Alcohol and cigarettes have an..........demand, which make them a good steady source of goveernment revenue?

a. elastic


b. inelastic


c. static


d. dynamic

Alcohol and cigarettes have an..........demand, which make them a good steady source of goveernment revenue?
B. Inelastic.





The change in price of alcohol and cigarettes has little effect on the amount sold. That makes them a good place to add taxes. People will keep buying them and tax revenues will go up.
Reply:inelastic (B)





Adding to their price makes them more expensive but the demand for them varies but little.





Graphically try something like y=100x where x represents quantity and y reps price, add tax by y = 100x+ tax and see what happens.