3 5. Problems and Applications QSAfter economics class one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quiteInelastic.Taxing food is efficient than taxing other things with more elastic demand.True or False: Taxing food is a bad wy to raise revenue from an equality point of view because poor people spend a higher proportion of their incomeon food.O TrueOFalse

The curve that depicts various quantities being demanded by individuals at various levels of price…

After economics class one day, your friend suggests that taxing food would be a good way to raise reven ue because the demand for food is quite Inelastic. Taxing food is effcient than taxing other things with more elastic demand. True or False: Taxing food is a bad wy to raise revenue from an equality point of view because poor people spend a higher proportion of their income on food. O True O False