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---------------------------------------------------------------- Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 25 million cases of cola were sold every month
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Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 25 million cases of cola were sold every month at a price of $7 per case. After the tax, 18 million cases of cola are sold every month; consumers pay $8 per case, and producers receive $5 per case (after paying the tax). The amount of the tax on a case of cola is burden that falls on producers is per case. Of this amount, the burden that falls on consumers is per case, and the per 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. O True O False
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