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Back to Assignment Attempts Averago / 2 5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the

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Back to Assignment Attempts Averago / 2 5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 45 million bottles of wine were sold every month at a price of $5 per bottle. After the tax, 39 million bottles of wine are sold every month; consumers pay $6 per bottle, and producers receive $2 per bottle (after paying the tax). The amount of the tax on a bottle of wine is S burden that falls on producers is 5 per bottle of this amount, the burden that falls on consumers is per bottle, and the per bottle True or False: The effect of the tax on the quantity sold would have been targer if the tax had been levied on consumers. True False Grade It Now Save & Continue Continue without saving

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