A government chooses to raise the indirect tax on petrol. Petrol has a price elasticity of demand that is inelastic. What outcomes are likely to follow?
- Aquantity of petrol bought decreases; government revenue decreases
- Bquantity of petrol bought decreases; government revenue increases
- Cquantity of petrol bought increases; government revenue decreases
- Dquantity of petrol bought increases; government revenue increases