Question: Attempts Keep the Highest / 2 5. Calculating tax incidence Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25 billion cases of cola were sold every year at a price of $7 per case. After the tax, 18 billion cases of cols are sold every year, consumers pay $8 per case (including the tax), and producers receive $5 perSee the answerSee the answerSee the answer done loadingShow transcribed image textHey champ, Welcome to this platform. Here you will ge…View the full answerTranscribed image text: Attempts Keep the Highest / 2 5. Calculating tax incidence Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25 billion cases of cola were sold every year at a price of $7 per case. After the tax, 18 billion cases of cols are sold every year, consumers pay $8 per case (including the tax), and producers receive $5 per case. per case of this amount, the burden that folls on consumers is per case, and the The amount of the tax on a case of cola is 5 burden that falls on producers is 5 per case True or Folse: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers, True False
