Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25 billion cases of cola were sold every year at a price of $5 per case. After the tax, 18 billion cases of cola are sold every year; consumers pay $6 per case (including the tax), and producers receive $3 per case.

The amount of the tax on a case of cola is ___________ $ per case. Of this amount, the burden that falls on consumers is __________$ per case, and the burden that falls on producers is ____________$ per case.

The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

a. True
b. False

Sagot :

Answer:

$1

$2

false

Explanation:

A tax is a compulsory sum levied on goods and services by the government. Taxes increases the price of goods

Tax = amount consumers pay - amount producers receive

$6 - $3 = $3

Tax paid by consumers = Price after tax - tax before tax

$6 - $5 = $1

Amount received by producers = tax - tax paid by consumers

$3 - $1 = $2

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.