After a tax is imposed,the price paid by consumers ________ and the price received by producers ________.

Question

Quizplus · Accepted Answer

When a tax is imposed, the price paid by consumers increases because producers need to cover the cost of the tax, which is added to the original price. However, the price received by producers decreases because consumers are willing to pay less for the product after the tax is added. Therefore, the correct answer is B, as the price paid by consumers increases and the price received by producers decreases.

After a Tax Is Imposed,the Price Paid by Consumers ________