5. Calculating tax incidence Suppose that the local government of Corpus Christi decides to institute a tax on cider producers. Before the tax, 40,000 cases of cider were sold every week at a price of $11 per case. After the tax, 34,000 cases of cider are sold every week; consumers pay $13 per case, and producers receive $6 per case (after paying the tax). The amount of the tax on a case of cider is $ 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. O True per case. Of this amount, the burden that falls on consurhers is False per case, and the

5. Calculating tax incidence Suppose that the local government of Corpus Christi decides to institute a tax on cider producers. Before the tax, 40,000 cases of cider were sold every week at a price of $11 per case. After the tax, 34,000 cases of cider are sold every week; consumers pay $13 per case, and producers receive $6 per case (after paying the tax). The amount of the tax on a case of cider is $ 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. O True per case. Of this amount, the burden that falls on consurhers is False per case, and the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6 . Consumer Surplus Ana buys an iPhone for $150 and gets a consumer surplus of $200. Her willingness to pay for an iPhone is $_________. If she had bought the iPhone on sale for $100, her consumer surplus would have been $_______. If the price of the iPhone had been $370, her consumer surplus would have been $_________.
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