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Question
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.
Answer
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Related questions
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What is the long-run consequence of a price ceiling law?
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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