How does change in per unit tax influence the supply of a good by a fi

1.	How does change in per unit tax influence the supply of a good by a firm? Explain.
Answer» Suppose per unit tax is raised. This raises cost of producing the good. Price remaining unchanged Profits decline. This is his disincentive to producers who supply less.

How does change in per unit tax influence the supply of a good by a firm? Explain.

Answer»

Suppose per unit tax is raised. This raises cost of producing the good. Price remaining unchanged Profits decline. This is his disincentive to producers who supply less.

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How does change in per unit tax influence the supply of a good by a firm? Explain.

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