In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demand

In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demand is inelastic. This means that the demand for the good does not change much even if its price increases. For example, if the government were to impose a higher tax on a necessary item such as medicine, people would still need to buy the medicine even if the price goes up. This means that the demand for the medicine would be inelastic, and the government would be able to raise more revenue from the tax. On the other hand, if the government were to impose a higher tax on a luxury item such as a high-end car, people might choose to buy a less expensive car instead if the price goes up. This means that the demand for the high-end car would be elastic, and the government would not be able to raise as much revenue from the tax. In simple terms, the government should impose higher taxes on goods whose demand is inelastic in order to raise more revenue because people will still buy the good even if its price goes up.