If the government would like to maximize tax revenue, it would be wise to raise tax rates for goods that have very low price elasticities of demand. For these goods, an increase in the after-tax price is unlikely to have much impact on the quantity demanded, and the government will be able to rake in a greater amount of tax revenue. This is not the case for goods with very high price elasticities of demand. A tax hike will have a pronounced diminishing effect on the quantity of these goods demanded.