3. Suppose that the Turkish government decides to levy a tax (such as an excise tax) on beer producers. Before the tax, 12,000 cases of beer were sold every Week at a price of S6 per case. After the tax, 6,000 cases of beer are sold every week; consumers pay $8 per case (including the tax), and producers receive $5 per case. Calculate tax burden on consumers and producers.

3. Suppose that the Turkish government decides to levy a tax (such as an excise tax) on beer producers. Before the tax, 12,000 cases of beer were sold every Week at a price of S6 per case. After the tax, 6,000 cases of beer are sold every week; consumers pay $8 per case (including the tax), and producers receive $5 per case. Calculate tax burden on consumers and producers.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 5QR

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3. Suppose that the Turkish government decides to levy a tax (such as an excise tax) on beer producers.
Before the tax, 12,000 cases of beer were sold every Week at a price of S6 per case. After the tax, 6,000
cases of beer are sold every week; consumers pay $8 per case (including the tax), and producers receive
$5 per case. Calculate tax burden on consumers and producers.

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