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The following graph shows the weekly market for craft beer in some hypothetical economy. Suppose the government levies a tax of $11.60 per case. The

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The following graph shows the weekly market for craft beer in some hypothetical economy. Suppose the government levies a tax of $11.60 per case. The tax places a wedge between the price buyers pay and the price sellers receive. 50 45 40 Supply 35 30 Tax Wedge 25 PRICE (Dollars per case) 20 15 10 5 Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY (Cases of craft beer)

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