1. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 3 million bottles of wine are sold every month; consumers pay $7 per bottle, and producers receive $4 per bottle (after paying the tax). per bottle. Of this amount, the burden that falls on consumers is per bottle, and the per bottle. The amount of the tax on a bottle of wine is 5 burden that falls on producers is S True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers. True O False