If you want to reduce the inefficiency costs of taxation,you should devise taxes to fall on goods for which the supply is _____ and the demand is _____.

A) elastic;elastic
B) inelastic;inelastic
C) elastic;inelastic
D) inelastic;elastic

Inefficiency Costs

The costs associated with not utilizing resources in the most productive manner, which can lead to increased operational expenses and reduced profitability.

Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in one of its determinants, such as price or income.

Taxation

Taxation is the process by which governments finance their expenditure by imposing charges on citizens and corporate entities.