Suppose that the local government of Raleigh decides to institute a tax on cider consumers. Before the tax, 30,000 cases of cider were sold every week at a price of $11 per case. After the tax, 24,000 cases of cider are sold every week; consumers pay $13 per case (including the tax), and producers receive $9 per case. The amount of the tax on a case of cider is 1 that falls on producers is s 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 producers. True per case. Of this amount, the burden that falls on consumers is s False per case, and the burden.
Suppose that the local government of Raleigh decides to institute a tax on cider consumers. Before the tax, 30,000 cases of cider were sold every week at a price of $11 per case. After the tax, 24,000 cases of cider are sold every week; consumers pay $13 per case (including the tax), and producers receive $9 per case. The amount of the tax on a case of cider is 1 that falls on producers is s 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 producers. True per case. Of this amount, the burden that falls on consumers is s False per case, and the burden.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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5. Calculating tax incidence
Suppose that the local government of Raleigh decides to insitute a tax on cider consumers. Before the tax, 30,000 cases of cider were sold every week at a price of $11 per case. After the tax, 24,000 cases of cider are sold every week; consumers pay $13 per case (including the tax), and producers recieve $9 per case. Please Help!!!!
Transcribed Image Text:5. Calculating tax incidence
Suppose that the local government of Raleigh decides to institute a tax on cider consumers. Before the tax, 30,000 cases of cider were sold every
week at a price of $11 per case. After the tax, 24,000 cases of cider are sold every week; consumers pay $13 per case (including the tax), and
producers receive $9 per case.
The amount of the tax on a case of cider is s
that falls on producers is s
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 producers.
True
False
per case. Of this amount, the burden that falls on consumers is s
per case, and the burden.
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