Burden that falls on consumers

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Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 35,000 cases of cola were sold every week at a price of $4 per case. After the tax, 29,000 cases of cola are sold every week; consumers pay $5 per case, and producers receive $1 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.____

Reference no: EM131638434

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