Question

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.

Answer 1

C. The price of potato chips would rise.

Step-by-step 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.