6. Calculating tax incidence Suppose that the U. S. government decides to charge cola producers a tax. Before the tax, 20,000 cases of cola were sold every week at a price of $4 per case. After the tax, 13,000 cases of cola are sold every week; consumers pay $7 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of cola isper case. Of this amount, the burden that falls on consumers isper case, and the burden that falls on producers isper case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. True False

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?