A Tax on Milk Would Likely Cause an Increase in the

question 142

Multiple Choice

A tax on milk would likely cause an increase in the

• A) price consumers pay for milk.
• B) price producers receive for milk.
• C) amount of milk sold.
• D) revenues earned from selling milk.
• E) profits earned by selling milk.

---

Definitions:

Middle East

A transcontinental region centered on Western Asia and Egypt, known for its historical and strategic significance.

Western Europe

A region comprising countries located in the western part of the European continent, often associated with developed economies and democratic governance.

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

APC

Average Propensity to Consume, which measures the fraction of income that households spend on consumption rather than saving.