Business, 24.06.2020 18:01 sativataurus
Suppose that the U. S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold every year at a price of $5 per case. After the tax, 44 billion cases of cola are sold every year; consumers pay $6 per case, and producers receive $2 per case (after paying the tax).
The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case, and the burden that falls on producers is $ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Answers: 3
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Suppose that the U. S. government decides to charge cola producers a tax. Before the tax, 50 billion...
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