Asked by Kenrick Mendez on Apr 24, 2024
Verified
Suppose an emissions tax is imposed on all dairy farms in Wisconsin.This tax would:
A) encourage the dairy farmers to lower prices.
B) increase the level of emissions.
C) reduce the supply of milk in Wisconsin.
D) increase the supply of milk in Wisconsin.
Emissions Tax
An emissions tax is a levy on the pollution generated by businesses or individuals, aimed at reducing the environmental harm caused by such emissions.
Dairy Farms
Agricultural enterprises where cattle are raised for milk production, which may be processed on-site or at separate facilities.
- Understand the calculation and implications of setting taxes on pollutants for businesses and their effects on the supply of products.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
C
Explanation :
An emissions tax would increase the cost of production for dairy farmers, leading to a decrease in the supply of milk in Wisconsin as some farmers may go out of business or reduce their production. This would result in higher prices for consumers due to the reduced supply. It would also incentivize farmers to reduce their emissions in order to avoid the tax, which would have a positive impact on the environment.
Learning Objectives
- Understand the calculation and implications of setting taxes on pollutants for businesses and their effects on the supply of products.