Question: Back to Assignment Attempts |:|:|: Keep the Highest / 2 5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a

 Back to Assignment Attempts |:|:|: Keep the Highest / 2 5.

Calculating tax incidence Suppose that the U.S. government decides to charge beer

Back to Assignment Attempts |:|:|: Keep the Highest / 2 5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 50 million cases of beer were sold every month at a price of $7 per case. After the tax, 44 million cases of beer are sold every month; consumers pay $10 per case, and producers receive $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 that falls on consumers is $ 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 smaller if the tax had been levied on consumers. a\

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