if-a-government-imposes-a-tax-on-a-good-with-inelastic-demand-what-is-the-likely

Question

If a government imposes a tax on a good with inelastic demand, what is the likely effect on total revenue?

Accepted Answer

Total revenue will increase as consumers continue to buy the good.

Answer

Total revenue will remain unchanged.

Answer

Total revenue will decrease as consumers stop buying the good.

Answer

Total revenue will become zero.