How would the consumer notice if the government decided to levy a new $2 tax on potato chips? A. There would be no change in price and the consumer would not notice. B. Consumers would pay the same price for potato chips, but would notice the $2 tax at the register. C. The price of potato chips would rise. D. The government would tax individuals who bought too many potato chips.

Question

Bella Mccoy

Business

22 May, 11:03

How would the consumer notice if the government decided to levy a new $2 tax on potato chips? A. There would be no change in price and the consumer would not notice. B. Consumers would pay the same price for potato chips, but would notice the $2 tax at the register. C. The price of potato chips would rise. D. The government would tax individuals who bought too many potato chips.

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Answers (1)

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Clinton Bender · Answer 1

C. The price of potato chips would rise.

Explanation:

If the government levies taxes on potato chips, the cost of production would be higher and producers would increase prices to maintain profit margin.