Calculating tax incidence

Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 40 million cases of cola were sold every month at a price of $5 per case. After the tax, 34 million cases of cola are sold every month; consumers pay $6 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