Solved UPSC CDS/OTA Question
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Q · Law of ElasticityMedium · 45s
Statement: Which elasticity concept is important for indirect taxation policy?
TopicLaw of Elasticity
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Governments impose indirect taxes more on inelastic goods to maximise revenue.
Final Answer: Option D - Price elasticity of demand