4. Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors....

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4. Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors. The tax would not appl

business economics

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Answer 1

Answer #1

Burden on consumers = ES/(ES-ED) = 4/(4+0.2) = 95.23%

Burden on producers = ED/(ES-ED) = 0.2/(4+0.2) = 4.77%

So, Liquor consumers bear the greater burden

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Answer 2

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4. Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors....