A $5 per unit sales tax is bad for consumers because it implies that the total amount (price plus tax)that they must pay increases by $5.

Name: A $5 per unit sales tax is bad for consumers because it implies that the total amount (price plus tax)that they must pay increases by $5.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A $5 per unit sales tax does not necessarily mean the total price increases by $5, as the tax burden may be shared between consumers and producers depending on the price elasticity of demand and supply.

A $5 Per Unit Sales Tax Is Bad for Consumers