A tax on apples would cause consumers to suffer because

Question

Quizplus · Accepted Answer

A tax on apples would increase the cost of production, leading to an increase in the price of apples. As a result, consumers would be less willing to purchase apples, leading to a decrease in the quantity of apples sold. This would lower consumer surplus and cause consumers to suffer. Revenues for apple growers would also decrease, and producer surplus would decrease. However, the government would collect revenue from the tax.

A Tax on Apples Would Cause Consumers to Suffer Because