Asked by marbel popoteur on Jun 11, 2024
Verified
A government tax per unit of output reduces supply.
Government Tax
Mandatory financial charges or levies imposed by the government on individuals, businesses, and transactions to fund government spending.
Supply
Refers to the total amount of goods or services that are available for purchase at any given price level.
- Identify the drivers for change in supply and demand, especially considering the influence of governmental strategies such as subsidies and taxes.
Verified Answer
NB
Nurshazwana bt mohamad rajnikaniJun 12, 2024
Final Answer :
True
Explanation :
When the government imposes a tax per unit of output, the cost of producing each unit increases for the producer. This results in lower profits for the producer and hence, leads to a decrease in the supply of the product. Therefore, a government tax per unit of output reduces supply.
Learning Objectives
- Identify the drivers for change in supply and demand, especially considering the influence of governmental strategies such as subsidies and taxes.
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