Business, 15.01.2020 05:31 josh11742

Suppose that the u. s. government decides to charge wine consumers a tax. before the tax, 25 million bottles of wine were sold every month at a price of $7 per bottle. after the tax, 18 million bottles of wine are sold every month; consumers pay $8 per bottle (including the tax), and producers receive $5 per bottle.

the amount of the tax on a bottle of wine is $ per bottle. of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle.

true or false: the effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.

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Suppose that the u. s. government decides to charge wine consumers a tax. before the tax, 25 million...

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