When government imposes a per-unit tax on a product, the net price producers actually receive for the product (after taxation) typically:
A) increases by the amount of the per-unit tax.
B) increases by less than the amount of the per-unit tax.
C) decreases by the amount of the per-unit tax.
D) decreases by less than the amount of the per-unit tax.

Question

Quizplus · Accepted Answer

The Answer of When government imposes a per-unit tax on a product, the net price producers actually receive for the product (after taxation) typically:
A) increases by the amount of the per-unit tax.
B) increases by less than the amount of the per-unit tax.
C) decreases by the amount of the per-unit tax.
D) decreases by less than the amount of the per-unit tax.

When Government Imposes a Per-Unit Tax on a Product, the Net