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Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10...

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 10 million bottles of wine were sold every month at a price of $4 per bottle. After the tax, 5 million bottles of wine are sold every month; consumers pay $6 per bottle, and producers receive $3 per bottle (after paying the tax). 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 the same as if the tax had been levied on consumers.

True

False

business   economics   
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Answer #1

El hJedge 2 S lo on Cous unu.h eusdan that Falls on produc i pu RatHe 6-3-3 FALSE

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