Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 30 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 23 million bottles of wine are sold every month; consumers pay $9 per bottle, and producers receive $4 per bottle (after paying the tax) and producers receive $5 per bottle. The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle.
The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.
A. True
B. False

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?