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
Homework Answers
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Suppose that the U.S. government decides to charge wine
producers a tax. Before the tax, 10...
. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax....
. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 50 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 44 million bottles of wine are sold every month; consumers pay $7 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is s per bottle. Of this amount, the...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every week at a price of $6 per bottle. After the tax, 25,000 bottles of wine are sold every week; consumers pay $8 per bottle, and producers receive $5 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...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 15...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 15 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 10 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 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...
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax....
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 25 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 18 billion bottles of wine are sold every year; consumers pay $8 per bottle, and producers receive $5 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the...
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 20...
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 20 billion bottles of wine were sold every year at a price of $5 per bottle. After the tax, 13 billion bottles of wine are sold every year; consumers pay $6 per bottle (including the tax), and producers receive $3 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__...
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 35 million bottles of wine were sold every month at a price of $4 per bottle.
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 35 million bottles of wine were sold every month at a price of $4 per bottle. After the tax, 30 million bottles of wine are sold every month; consumers pay $6 per bottle (including the tax), and producers receive $3 per bottle. The amount of the tax on a bottle of wine is _______ per bottle. Of this amount, the burden that falls...
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold every year at a price of $6 per bottle.
5. Calculating tax incidence Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold every year at a price of $6 per bottle. After the tax, 23 billion bottles of wine are sold every year; consumers pay $9 per bottle (including the tax), and producers receive per bottle. The amount of the tax on a bottle of wine is _______ per bottle. Of this amount, the burden that falls on...
Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10...
Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10 million cases of beer were sold every month at a price of $4 per case. After the tax, 3 million cases of beer are sold every month; consumers pay $7 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of beer is $_____per case. Of this amount, the burden that falls on consumers...
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 10,000...
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 10,000 cases of cola were sold every week at a price of $4 per case. After the tax, 5,000 cases of cola are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax). per case. Of this amount, the burden that falls on consumers is $ per case, and the burden The amount of the tax on...
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax....
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 25 billion cases of beer were sold every year at a price of $7 per case. After the tax, 19 billion cases of beer are sold every year; consumers pay $8 per case, and producers receive $4 per case (after paying the tax) The amount of the tax on a case of beer is$ per case. Of this amount, the burden...
. Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 50 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 44 million bottles of wine are sold every month; consumers pay $7 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is s per bottle. Of this amount, the...
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 15 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 10 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 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...
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 10,000 cases of cola were sold every week at a price of $4 per case. After the tax, 5,000 cases of cola are sold every week; consumers pay $6 per case, and producers receive $3 per case (after paying the tax). per case. Of this amount, the burden that falls on consumers is $ per case, and the burden The amount of the tax on...
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 25 billion cases of beer were sold every year at a price of $7 per case. After the tax, 19 billion cases of beer are sold every year; consumers pay $8 per case, and producers receive $4 per case (after paying the tax) The amount of the tax on a case of beer is$ per case. Of this amount, the burden...
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