Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax tax is imposed.
A) 10 cents
B) 20 cents
C) 30 cents
D) 40 cents

Question

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.  Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax tax is imposed.
A) 10 cents 
B) 20 cents 
C) 30 cents 
D) 40 cents

Quizplus · Accepted Answer

The correct answer is A because a 10 cents per apple tax will increase the price of apples in the United States to 40 cents per apple.

Refer to the Information Provided in Figure 4