In general,a tax placed on each unit a producer sells results in
A) economic efficiency.
B) more production.
C) increased demand for the taxed good.
D) a decrease in demand for the taxed good.
E) a deadweight loss.

Question

Quizplus · Accepted Answer

A tax on each unit a producer sells typically leads to a deadweight loss, which is a loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

In General,a Tax Placed on Each Unit a Producer Sells