Suppose that a 10 cent tax per apple is imposed on apple growers (producers). ThenSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.athe effective supply curve will shift upwards by 10 centsbthe effective supply curve will shift upwards by 5 centscthe effective supply curve will shift downwards by 10 centsdthe effective demand curve will shift upwards by 5 centsethe effective demand curve will shift downwards by 10 cents

The correct answer is a) the effective supply curve will shift upwards by 10 cents.

Here's why:

1. A tax on producers is a cost of production.

2. According to the

The correct answer is a) the effective supply curve will shift upwards by 10 cents.

Here's why:

1. A tax on producers is a cost of production.

2. When the cost of production increases, the supply decreases. This is because producers are less willing or able to produce goods at the same price.

3. In a graph of supply and demand, a decrease in supply is represented by a shift of the supply curve to the left.

4. However, because the tax is a specific amount per unit (10 cents per apple), this is equivalent to an upward shift of the supply curve by the amount of the tax.

5. Therefore, the effective supply curve will shift upwards by 10 cents.

The correct answer is a) the effective supply curve will shift upwards by 10 cents.

Here's why:

1. A tax on producers is a cost of production.
2. When the cost of production increases, the supply decreases.
3. In a graph where the vertical axis is the price and the horizontal axis is the quantity, a decrease in supply is represented by a leftward shift of the supply curve.
4. However, because the tax is a specific amount per unit (in this case, per apple), this is represented by an upward shift of the supply curve by the amount of the tax.
5. Therefore, the supply curve will shift upwards by 10 cents.

The correct answer is a) the effective supply curve will shift upwards by 10 cents.

Here's why:

1. When a tax is imposed on producers (in this case, apple growers), it increases their cost of production.

2. This increased cost is represented by a shift upwards in the supply curve.

3. The amount of the shift is equal to the amount of the tax, which in this case is 10 cents.

4. Therefore, the effective supply curve will shift upwards by 10 cents.

This shift does not affect the demand curve, so options d) and e) are incorrect. The shift is not downwards or by 5 cents, so options b) and c) are also incorrect.

The correct answer is a) the effective supply curve will shift upwards by 10 cents.

Here's why:

1. When a tax is imposed on producers, it increases their cost of production. This is because they now have to pay an additional amount (in this case, 10 cents) for each unit of the good they produce (in this case, each apple).

2. Because of this increase in cost, producers are willing to supply each unit of the good at a higher price than before. This is because they need to cover their increased costs in order to maintain their profit margins.

3. This change in producer behavior is represented graphically by an upward shift in the supply curve. The supply curve shows the relationship between the price of a good and the quantity of the good that producers are willing to supply. When the supply curve shifts upwards, it means that producers are willing to supply the same quantity of the good only at a higher price.

4. The amount by which the supply curve shifts upwards is equal to the amount of the tax. This is because the tax is the cause of the increase in cost that producers are trying to cover by charging a higher price. So in this case, the supply curve will shift upwards by 10 cents.