Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 35 billion cases of cola were s

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Suppose That The U S Government Decides To Charge Cola Consumers A Tax Before The Tax 35 Billion Cases Of Cola Were S 1 (12.2 KiB) Viewed 18 times

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 35 billion cases of cola were sold every year at a price of $5 per case. After the tax, 30 billion cases of cola are sold every year; consumers pay $7 per case (including the tax), and producers receive $4 per case. per case, and the The amount of the tax on a case of cola is S per case. Of this amount, the burden that falls on consumers is S burden 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 producers. True False