Impact of Apple Seller Tax on Supply

Answered using GPT-4o mini by AI Answer Generator

Question:

A tax on sellers of apples:

A tax on sellers of apples:

causes the supply curve to shift to the right.

leads sellers to supply more apples at every price.

leads buyers to demand more apples at every price.

leads sellers to supply fewer apples at every price.

Answer:

A tax on sellers of apples typically leads sellers to supply fewer apples at every price. This is because the tax increases the cost of selling apples, which can reduce the quantity that sellers are willing to supply at any given price. As a result, the supply curve shifts to the left, indicating a decrease in supply.

So, the correct statement is:

leads sellers to supply fewer apples at every price.