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Business, 05.07.2020 14:01 kimberlylove387

Suppose that the U. S. government decides to charge cola consumers a tax. Before the tax, 35 million cases of cola were sold every month at a price of $7 per case. After the tax, 28 million cases of cola are sold every month; consumers pay $8 per case (including the tax), and producers receive $5 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

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Suppose that the U. S. government decides to charge cola consumers a tax. Before the tax, 35 million...
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