Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 40,000 cases of beer were sold every week at a price of $7 per case. After the tax, 34,000 cases of beer are sold every week; consumers pay $8 per case, and producers receive $4 per case (after paying the tax).

The amount of the tax on a case of beer 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 larger if the tax had been levied on consumers.

True

False