The most likely impact of an increase in taxes on smartphones is that the consumer and producer surplus would decline.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good. Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
When tax is increased, the price of a smartphone increases, this reduces both the consumer and producer surplus.
To learn more about consumer surplus, please check: https://brainly.com/question/25816093
