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Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 40,000 cases of cola were sold every week at a price of $7 per case. After the tax, 34,000 cases of cola are sold every week; consumers pay $10 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of cola is s that falls on producers iss | per case. Of this amount, the burden that falls on consumers iss per case, and the burden per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. True False

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 40,000 cases of cola were sold every week at a price of $7 per case. After the tax, 34,000 cases of cola are sold every week; consumers pay $10 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of cola is s that falls on producers iss | per case. Of this amount, the burden that falls on consumers iss per case, and the burden per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. True False

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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i need help with this question 6 from my microeconmics assigments. i have already gotten it wrong twice.

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 40,000 cases of cola were sold every week at a price of $7 per case. After the tax, 34,000 cases of cola are sold every week; consumers pay $10 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of cola is s that falls on producers iss | per case. Of this amount, the burden that falls on consumers iss per case, and the burden per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. True False
Transcribed Image Text:Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 40,000 cases of cola were sold every week at a price of $7 per case. After the tax, 34,000 cases of cola are sold every week; consumers pay $10 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of cola is s that falls on producers iss | per case. Of this amount, the burden that falls on consumers iss per case, and the burden per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. True False
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