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Business, 22.02.2021 18:50 harris435942
Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 30 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 23 million bottles of wine are sold every month; consumers pay $9 per bottle, and producers receive $4 per bottle (after paying 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.
The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.
A. True
B. False
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Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 30 million...
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