Amount of tax on a case of beer is = price that consumers pay-price the producers receive= 8-4=$4. Of this amount the burden of tax that fals on consumers=Price paid by consumers after tax-equilibrium price before tax=8-7=$1 and the burden that falls on producers=equilibrium price before tax-price received by producers after tax=7-4=$4
The effect tax would have been smaller if the tax would have been levied on consumers- FALSE, because it doesnt matter on whom the tax is levied, tax will affect the demand and supply in the same way.
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 cola producers a tax. Before the tax, 30 billion cases of cola were sold every year at a price of $5 per case. After the tax, 24 billion cases of cola are sold every year; consumers pay $6 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of cola is _____per case. Of this amount, the burden...
5. Calculating tax incidence Suppose that the U.5. government decides to charge beer consumers a tax. Before the tax. 50 billion cases of beer were sold every year at a price of $7 per case. After the tax, 44 billion cases of beer are sold every year consumers pay $10 per case (including the tax), and producers receive 4 per The amount of the tax on a case of beer is 5 that falls on producers is 5 per case....
5. Calculating tax incidence Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 10 billion cases of beer were sold every year at a price of $6 per case. After the tax, 5 billion cases of beer are sold every year; consumers pay $8 per case, and producers receive $5 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...
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...
Please help! 5. Calculating tax incidence Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 40 million cases of beer were sold every month at a price of $7 per case. After the tax, 34 million cases of beer are sold every month; consumers pay $8 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of beer is $ per case. Of this amount,...
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...
. 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 beer consumers a tax. Before the tax, 30,000 cases of beer were sold every week at a price of 7 per case. After the tax, 24,000 cases of beer are sold every week; consumers pay $8 per case (including the tax), and case. The amount of the tax on a case of beer is _______ per case. Of this amount, the burden that falls on consumers is _______ per case, and the burden...
6. Calculating tax incidence Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 15 million cases of cola were sold every month at a price of $6 per case. After the tax, 9 million cases of cola are sold every month; consumers pay $9 per case (including the tax), and producers receive $3 per case The amount of the tax on a case of colas S p er case of this amount, the burden...
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...