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Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 10,000 cases of cola were sold every week at a
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 10,000 cases of cola were sold every week at a price of $4 per case. After the tax, 5,000 cases of cola are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax). per case. Of this amount, the burden that falls on consumers is $ per case, and the burden The amount of the tax on a case of cola is $ that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on consumers. True O False
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