Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 6 - Part II - Supply, Demand, and Government Policies - Quick Check Multiple Choice - Page 129: 3

Answer

a) $1 per unit tax to producers

Work Step by Step

A $1 per unit tax on consumers is equivalent to a per unit tax on producers due to the equivalency of an inwards shift of the demand curve and an upwards shift of the supply curve by the same quantity.
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