5. Calculating tax incidence Suppose that the US. government decides to charge beer consumers a tax. Before the tax, 10,000 cases of beer were sold every week at a price of $4 per case. After the tax,...

Extracted text: 5. Calculating tax incidence Suppose that the US. government decides to charge beer consumers a tax. Before the tax, 10,000 cases of beer were sold every week at a price of $4 per case. After the tax, 3,000 cases of beer are sold every week; consumers pay $5 per case (including the tax), and producers recelve $2 per Case The amount of the tax on a case of beer is s per case. of this amount, the burden that falls on consumers is s per case, and the burden that falls on producers is per case. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers les or O True O False