Suppose that the U.S. government decides to charge beer producers a tax. Before the tax, 20 million cases of beer were sold every month at a price of $4 per case. After the tax, 13 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 is   per case, and the burden that falls on producers is   per case.   True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on consumers. True   False

Q: Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 20 million…

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