U.s. government decides to levy a tax

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Suppose that the U.S. government decides to levy a tax (such as an excise tax) on cola consumers. Before the tax, 20,000 cases of cola were sold every week at a price of $8 per case. after the teax, 8,000 cases of cola are sold every week; consumers pay $10 per case (including the tax), and producers recieve $6 per case.

The amount of 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_______.

Reference no: EM13149962

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