Question

Suppose that the U.S. Government decides to charge draft beer drinkers a tax. Before the tax, 35 million glasses of draft beer were sold every year at a price of $6 per glass. After the tax, 29 million glasses of draft beer are sold every year; consumers pay $9 per glass (including the tax) and producers receive $5.50 per glass. The tax burden that falls on consumers is $ ____ per glass,

Answer 1

Answer:

$3 per glass

Explanation:

THe consumer are paying (9-6) per glass, so $3 higher.

Most other data in the question seems irrelevant.