Amount of tax=consumer pay-seller received=10-4=$6
consumer burden=$10-7=$3
and producer burden =$7-$4=$3
true because end result doesnot depend on which party the tax is imposed
. Calculating tax incidence suppose that the u·s·government decides to charge oola consumers a tax. Before...
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...
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....
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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,...
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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...
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25,000 cases of cola were sold every week at a price of $5 per case. After the tax, 18,000 cases of cola are sold every week; consumers pay $6 per case (including the tax), and producers receive $3 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...
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...
. 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...
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...