Suppose an emissions tax is imposed on all dairy farms in Wisconsin.This tax would:
A)encourage the dairy farmers to lower prices.
B)increase the level of emissions.
C)reduce the supply of milk in Wisconsin.
D)increase the supply of milk in Wisconsin.

Question

Quizplus · Accepted Answer

An emissions tax would increase the cost of production for dairy farmers, leading to a decrease in the supply of milk in Wisconsin as some farmers may go out of business or reduce their production. This would result in higher prices for consumers due to the reduced supply. It would also incentivize farmers to reduce their emissions in order to avoid the tax, which would have a positive impact on the environment.

Suppose an Emissions Tax Is Imposed on All Dairy Farms