Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold every year at a price of $6 per case. After the tax, 43 billion cases of cola are sold every year; consumers pay $9 per case, and producers receive $4 per case (after paying the tax).

The amount of the tax on a case of Cola is___per case. Of this amount the burden that falls on consumers is___per case, and the burden that falls on producers is____per case.

The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

a. True

b. False

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