Between a specific tax and an ad-valorem tax where the after tax output is same with either tax, which one will the government prefer and why?
A. The ad-valorem tax as it raises more revenue and the impact on the producer is
the same as in under the specific tax.
B.The specific tax as it raises more revenue and the impact on the producer is the
same as in under the ad valorem tax.
C.The specific tax as it raises more revenue and the impact on the consumer is the
same as in under the ad valorem tax.
D.The ad-valorem tax as it raises more revenue and the impact on the consumer is the same as in under the specific tax.