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Business, 04.11.2021 20:20 WhirlyWave

Calculating tax incidenceSuppose that the U. S. government decides to charge beer consumers a tax. Before the tax, 25 million cases of beer were sold every month at a price of $5 per case. After the tax, 18 million cases of beer are sold every month; consumers pay $6 per case (including the tax), and producers receive $3 per case. The amount of the tax on a case of beer is$1per case. Of this amount, the burden that falls on consumers is$per case, and the burden that falls on producers is$per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers.

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Calculating tax incidenceSuppose that the U. S. government decides to charge beer consumers a tax. B...
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