Question

in what sense is taxing food a good way to raise revenue?
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Answer 1

Explanation:

Taxing food is a “good” way to raise revenue because if the demand for food is inelastic, the quantity demanded decreases in a less degree, than the price increases. So their product increases. It is not a “good” way to raise revenue, because taxing causes the deadweight loss of the national economy.

Answer 2

Answer:

Taxing food is a “good” way to raise revenue because if the demand for food is inelastic, the quantity demanded decreases in a less degree, than the price increases. So their product increases. It is not a “good” way to raise revenue, because taxing causes the deadweight loss of the national economy.

Explanation: