Producers may respond to a unit tax by _____.

Name: Producers may respond to a unit tax by _____.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

Producers may respond to a unit tax by increasing the value of each unit to offset the additional cost of the tax. This can be done by either improving the quality of the product or by adding additional features. Increasing the number of units sold, differentiating the product line, or selling the product in bundles may also be strategies used by producers, but they are not direct responses to a unit tax.

Producers May Respond to a Unit Tax by _____