Elasticity and Demand for Food (10 points, 5 points each)A. Consider the information on real-world price elasticities for ten countries on page 93 of the textbook. Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.?

Elasticity and Demand for Food (10 points, 5 points each)A. Consider the information on real-world price elasticities for ten countries on page 93 of the textbook. Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.? What does this imply about food purchases in the U.S. and Tanzania?B. The government wants to maximize its tax revenue. Revenue is equal to the amount of the tax times the quantity of goods sold (i.e., revenue = Tax • Q). Which will provide more tax revenue—a tax on gasoline or a tax on restaurant meals? Why?

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