If a government imposes a tax on a good with inelastic demand, what is likely to happen to the total revenue collected from that tax?

When a government imposes a tax on a good that has inelastic demand, the total revenue collected from that tax is likely to increase. Inelastic demand means that consumers will continue to buy the good even if the price goes up because they need it or there are no close substitutes. For example, if a tax is added to gasoline, people still need to fill their tanks for work or daily activities, so they will pay the higher price. As a result, even though the price rises, the quantity sold does not drop significantly, allowing the government to collect more tax revenue. This shows that when demand is inelastic, consumers are less sensitive to price changes, which benefits the government in terms of tax income.