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Business, 22.02.2021 21:50 ray3699

5. Calculating tax incidence Suppose that the U. S. government decides to charge cola consumers a tax. Before the tax, 25,000 cases of cola were sold every week at a price of $7 per case. After the tax, 18,000 cases of cola are sold every week; consumers pay $8 per case (Including the tax) , and producers receive $5 per case. se. The amount of the tax on a case of cola is burden that falls on producers is S per case. Of this amount, the burden that falls on consumers is S per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax has been levied on producers. O True False per case, and the Grade It Now Save

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