Business, 30.07.2020 02:01 Nigward666
Suppose that the U. S. government decides to charge beer consumers a tax. Before the tax, 10 billion cases of beer were sold every year at a price of $7 per case. After the tax, 5 billion cases of beer are sold every year; consumers pay $9 per case (including the tax), and producers receive $6 per case.
a. The amount of the tax on a case of beer is ($) per case. Of this amount, the burden that falls on consumers is ($) per case, and the burden that falls on producers is ($) per case.
b. (True or False) The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.
Answers: 3
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Suppose that the U. S. government decides to charge beer consumers a tax. Before the tax, 10 billion...
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