Business
Business, 30.07.2021 01:00, aalejo7594

Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 25,000 bottles of wine were sold every week at a price of $7 per bottle. After the tax, 19,000 bottles of wine are sold every week; consumers pay $8 per bottle, and producers receive $4 per bottle (after paying the tax). 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. True or False: The effect of the tax on the quantity sold would have been the same as if the tax has been levied on consumers. True False

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Suppose that the U. S. government decides to charge wine producers a tax. Before the tax, 25,000 bot...

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