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Business, 17.03.2020 01:20 lindsaymiklavic04

Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 25 billion bottles of wine were sold every year at a price of $5 per bottle. After the tax, 18 billion bottles of wine are sold every year; consumers pay $6 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax has been levied on consumers. True False

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Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 25 billion...
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