Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold every month at a price of $6 per case. After the tax, 39 million cases of cola are sold every month; consumers pay $7 per case (including the tax), and producers receive $3 per case (after paying the tax).
The amount of the tax on a case of cola is___per case. Of this amount, the burden that falls on consumers is____per case, and the burden that falls on producers is____per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
A. True
B. False

Respuesta :

Answer:

$4

$1

$3

b

Explanation:

Tax is a compulsory amount levied on goods and services. Taxes increase the price of a good

The type of tax stated here is a sales tax

A sales tax is an example of consumption tax. It is levied on the sales of goods and services

Tax on the case of cola = Amount paid by consumers after tax - amount received by producers

7 - 3 = 4

Tax paid by consumers = amount paid by consumers after tax - amount paid before tax

$7 - $6 = $1

Tax paid by suppliers = 4 - 1 = $3