Attempts Do No Harm / 2 5. Calculating tax incidence Suppose that the local government of Raleigh decides to institute a tax on soda consumers. Before the tax, 45 million liters of soda were sold every month at a price of $10 per liter. After the tax, 40 million liters of soda are sold every month; consumers pay $12 per liter (including the tax), and producers receive $8 per liter. The amount of the tax on a liter of soda is per liter. Of this amount, the burden that falls on consumers is per liter, and the burden that falls on producers is S per liter. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. True O False Grade It Now Save & Continue