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5. Calculating tax incidence Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 35,000 cases of beer were sold
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 35,000 cases of beer were sold every week at a price of $5 per case. Alter the tax, 20,000 cases of beer are sold every week consumers pay $5 per case (induding the tax), and producers receive $3 per case, The amount of the tax on a case of beer is per case of this amount, the burden that falls on consumers i per case, and that burden that talls on producers is per case True or False: The effect of the tax on the quantity sold would have been tror if the tax had been levied on producers True Fale
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