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Back to Assignment Attempts | | Do No Harm / 0.5 4. Calculating tax incidence Suppose that the local government of Chattanooga decides to institute a tax on beer consumers. Before the tax, 20 million packs of beer were sold every month at a price of $11 per pack. After the tax, 14 million packs of beer are sold every month; consumers pay $13 per pack (including the tax), and producers receive $9 per pack. The amount of the tax on a pack of beer is per pack. Of this amount, the burden that falls on consumers is per pack, and the burden that falls on producers is per pack. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. O True O False Grade It Now Prem. merolal tall) Continue without saving