A Unit Tax

question 62

Multiple Choice

A unit tax

• A) is based on the value of the good being sold.
• B) is a constant tax assessed on each unit of a good sold.
• C) is the primary tax studied in dynamic tax analysis.
• D) does not influence equilibrium price and quantity.

---

Definitions:

Bundle Pricing

A pricing approach where several items or services are bundled and offered for sale at one price.

Video Game Console

A video game console is a specialized electronic device designed exclusively for playing video games by connecting to a television or other display for visual output.

Premium Item

A premium item is a product or service offered at a higher quality and price point, often perceived as being of higher value than standard offerings.

Price-insensitive Product

Products for which demand remains relatively constant regardless of changes in price, often due to unique attributes or lack of substitutes.