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Natalka [10]
3 years ago
5

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every

week at a price of $4 per bottle. After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle, and producers receive $3 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 smaller if the tax has been levied on consumers. True
Business
1 answer:
kozerog [31]3 years ago
8 0

Answer:

Explanation:

We were informed from the question that;

BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.

AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).

✓✓The amount of tax on wine = $6 - $3 = $3 per bottle

✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax

= $6 - $4

=$2 per bottle

✓✓The tax burden on Producers = Price received before tax - price received after tax

= $4 - $3

=$1 per bottle

Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.

The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)

This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.

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Answer:

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Explanation:

According to the scenario, computation of the given data are as follows,

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Hunkins Corporation has provided the following data concerning last month's operations. Purchases of raw materials $ 33,000 Indi
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Answer:

Cost of goods manufactured $ 159,000

Explanation:

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Explanation:

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5 0
3 years ago
Read 2 more answers
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