The Imposition of a Per Unit Tax on a Product

question 25

Multiple Choice

The imposition of a per unit tax on a product

• A) will cause the supply curve to shift downward and to the right.
• B) will cause the supply curve to shift upward and to the left.
• C) will reduce the quantity supplied of the product.
• D) will encourage producers to increase the quantity supplied of the product.

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Definitions:

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