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Business, 18.06.2020 16:57 tatumleigh04

5. Calculating tax incidence Suppose that the U. S. government decides to charge cola producers a tax. Before the tax, 15 billion cases of cola were sold every year at a price of $6 per case. After the tax, 9 billion cases of cola are sold every year; consumers pay $9 per case, and producers receive $3 per case (after paying the tax). The amount of the tax on a case of cola 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 larger if the tax had been levied on consumers. True False

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