A disadvantage of unit excise taxes is they create the incentive _____

A disadvantage of unit excise taxes is they create the incentive _____.

a. for producers to favor smaller products over larger products
b. for producers to favor expensive products over inexpensive products
c. for buyers to purchase more of the good then they otherwise would
d. for buyers to shift to substitute goods with ad valorem excise taxes

 

ANSWER

b

 

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