Attempts: Average: /2 4. Problems and Applications Q4 Suppose that the government imposes a tax on heating oil True or False: The revenue collected from this tax would likely be larger in the first year after it is imposed than in the fifth year. True False True or False: The deadweight loss from this tax would likely be smaller in the fifth year after it is imposed than in the first year as demand for heating oil become more elastic. True False Grade It Now Save & Continue Continue without saving

After economics class one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quite inelastic. True or False: A tax on food leads to larger deadweight loss than a tax on goods with more elastic demand True O False True or False: Taxing food is a bad way to raise revenue from an equality point of view because poor people spend a higher proportion of their income on food. True False Grade It Now Save & Continue Continue without saving