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A Tax on Apples Would Cause the Price Paid by Consumers

question 19

Multiple Choice

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


Definitions:

Natural Resources

Natural resources, including minerals, forests, water, and arable land, are elements found in the environment that can be exploited for financial benefit.

Price Change

An adjustment in the cost of a good or service.

Natural Resources

Raw materials and environmental assets that are found in nature and can be used for economic gain.

Elasticity of Demand

Estimating how much the demand for a product fluctuates in response to changes in its price.

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