5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10

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5. Calculating tax incidence
Suppose that the U.S. government decides to charge beerproducers a tax. Before the tax, 10,000 cases of beer were soldevery week at a price of $5 per case. After the tax, 5,000 cases ofbeer are sold every week; consumers pay $7 per case, and producersreceive $4 per case (after paying the tax).
The amount of the tax on a case of beer is$_____ per case. Of this amount, the burden thatfalls on consumers is $_____ per case, and theburden that falls on producers is $_____ percase.
True or False: The effect of the tax on the quantity sold wouldhave been the same as if the tax had been levied on consumers.
True
False