Suppose that the U

Subject:EconomicsPrice:2.88 Bought3

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Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 45,000 cases of Cola were sold every week at a price of $5 case. After the tax, 39,000 cases of cola are sold every week; consumers pay $6 per case, and producers receive $2 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.

True or False: 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