Arrange the following statements in chronological order in respect to the impact of a unit tax on supply:

(A) Imposition of unit tax increases the price of commodities.

(B) Increased prices will lead to an increase in LRAC and LRMC.

(C) The firm's long run supply curve shifts to the left.

(D) At any given market price, the firm supplies fewer units of output.

Choose the correct answer from the options given below:

Option 1 -> The sequence starts with tax imposition (A), leading to increased LRAC/LRMC (B), causing supply curve to shift left (C), resulting in reduced output (D) - chronologically correct.

Option 2 -> Places (C) before (B), which is incorrect as the supply curve shift is a consequence of cost increases, not vice versa.

Option 3 -> Begins with (B) before (A), which is illogical as cost increases cannot occur before the tax is imposed.

Option 4 -> Starts with (C) and ends with (A), completely reversing the cause-effect relationship.

Hence, Option 1: (A), (B), (C), (D) -> When a unit tax is imposed, the chronological sequence is: (A) The tax immediately increases the price/cost of commodities; (B) These increased costs raise the Long Run Average Cost (LRAC) and Long Run Marginal Cost (LRMC) curves upward; (C) The upward shift in cost curves causes the firm's long run supply curve to shift leftward; (D) As a final result, at any given market price, the firm now supplies fewer units of output. This represents the complete causal chain from tax imposition to reduced output supply. -> correct