An advantage of a unit tax is that the relative price changes have no effect on the tax per unit.

Question

Quizplus · Accepted Answer

A unit tax is a fixed tax per unit of a good or service, therefore, no matter how the price changes, the tax per unit remains the same. This means that the tax revenue collected by the government is more stable and predictable, and it also ensures that consumers pay a consistent amount of tax per unit purchased.

An Advantage of a Unit Tax Is That the Relative