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what are the answers? Attempts l | Average / 2 5. Calculating tax incidence Suppose that the Canadian government decides to charge cola consumers a

what are the answers?

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Attempts l | Average / 2 5. Calculating tax incidence Suppose that the Canadian government decides to charge cola consumers a per-unit tax (a tax on each unit purchased). Before the tax, 40 billion cases of cola were sold every year at a price of $5 per case. After the tax, 34 billion cases of cola are sold every year; consumers pay $6 per case (including the tax), and producers receive $2 per case. The amount of the tax on a case of cola is per case. Of this amount, the burden that falls on consumers is E per case, and the burden that falls on producers is per case. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers. 0 True 0 False Continue without saving

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