A tax on apples would cause the price paid by consumers to ________ and the price received by producers to ________.

Question

Quizplus · Accepted Answer

A tax on apples would increase the cost of producing apples, which would cause the price received by producers to decrease. This decrease in supply would then cause an increase in the price paid by consumers. Therefore, the tax would cause the price paid by consumers to increase and the price received by producers to decrease.

A Tax on Apples Would Cause the Price Paid by Consumers