Question

What is the likely effect on the market for wine of a simultaneous increase in both consumer incomes and producer taxes on wine?

Answer 1

If there was an increase in both consumer incomes and producer taxes, the market for wine would see an increase in price.

How would the wine market be affected?

An increase in producer taxes on wine would increase wine prices as producers aim to pass on the taxes to consumers.

Prices will also increase when consumers have more income and demand more wine. The overall effect is there an increase in the price of wine.

Find out the impact on increased demand on price at https://brainly.com/question/3522474.

#SPJ12