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Suppose that the United States government decides to charge wine consumers a tax. before the tax, 50,000 bottles of wine were sold every week at
Suppose that the United States government decides to charge wine consumers a tax. before the tax, 50,000 bottles of wine were sold every week at a price of six dollars per bottle. After the tax, 43,000 bottles of wine are sold every week; consumers pay nine dollars per bottle including the tax, and producers receive four dollars per bottle. What is the amount of tax on a bottle of wine? Of this amount, the burden that falls on consumers is how many dollars per bottle? What's the burden on producers?
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