Question

Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets.

True or False:

This tax won't raise much revenue because the high tax rate would likely cause the equilibrium quantity to be near zero.

Answer 1

True.

Step-by-step explanation:

Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets.

However, this tax won't raise much revenue because the high tax rate would likely cause the equilibrium quantity to be near zero.