A Tax on Apples Would Cause Apple Growers to Suffer

question 103

Multiple Choice

A tax on apples would cause apple growers to suffer because

• A) consumer surplus would decrease.
• B) the government would collect revenue from the tax.
• C) consumers would pay higher prices.
• D) producer surplus would increase.
• E) revenues and profits from growing apples would decrease.

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Definitions:

Inventory Purchase

The acquisition of goods or raw materials intended for sale or use in production processes.

Transaction Date

The specific date on which a trade or financial transaction occurs, marking when the obligations for both parties in the transaction are established.

Settlement Date

The specific date on which a transaction is finalized or completed; for financial trades, it's when legal ownership is transferred.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payable on any type of debt for a specific period.