A Tariff on Avocadoes ______________ the Price of Avocadoes,_____________ Consumers

question 30

Multiple Choice

A tariff on avocadoes ______________ the price of avocadoes,_____________ consumers' surplus for avocado buyers,_______________ producers' surplus of avocado growers and __________________ tariff revenue.Because the loss to _____________ is more than the gain to ___________________,there is a net loss to society.

• A) raises; increases; decreases; generates; producers; consumers and government
• B) lowers; increases; decreases; does not generate; producers and government; consumers
• C) raises; increases; decreases; does not generate; producers and government; consumers
• D) raises; decreases; increases; generates; consumers; producers and government

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Definitions:

Price Ceiling

A maximum price sellers are allowed to charge for a good or service; a form of price control.

Excise Tax

is a tax applied to specific goods or services, such as alcohol or tobacco, usually with the aim of reducing consumption or raising revenue.

SUVs

Sport Utility Vehicles, a category of motor vehicles which combine elements of road-going passenger cars with features from off-road vehicles.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of items such as gasoline, alcohol, and tobacco.