Suppose that the local government of Corpus Christi decides to institute a tax on seltzer producers....
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Suppose that the local government of Corpus Christi decides to institute a tax on seltzer producers. Before the tax, 45,000 packs of seltzer were sold every week at a price of $9 per pack. After the tax, 39,000 packs of seltzer are sold every week; consumers pay $12 per pack, and producers receive $5 per pack (after paying the tax). The amount of the tax on a pack of seltzer is $ burden that falls on producers is s per pack. per pack. Of this amount, the burden that falls on consumers is $ per pack, and the Suppose that the local government of Corpus Christi decides to institute a tax on seltzer producers. Before the tax, 45,000 packs of seltzer were sold every week at a price of $9 per pack. After the tax, 39,000 packs of seltzer are sold every week; consumers pay $12 per pack, and producers receive $5 per pack (after paying the tax). The amount of the tax on a pack of seltzer is $ burden that falls on producers is s per pack. per pack. Of this amount, the burden that falls on consumers is $ per pack, and the
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