Question

Suppose that the government decides to charge cola consumers an excise tax. Before the tax, 12 million cases of cola are sold every month at a price of $3.50 per case. After the tax, 6 million cases of cola are sold every month; consumers pay $4.00 per case and producers receive $2.00 per case. Use this information to answer the following questions. (a) What is the incidence of the tax that falls on producers. (b) What is the incidence of the tax that falls on consumers


For a i got $1.50 and for b I got .50 cents

Answer 1

I agree