Respuesta :
Answer:
(a) $3 per bottle
(b) $1
(c) $2
Explanation:
Given that,
Before the tax:
10 billion bottles of wine were sold every year at a price of $4 per bottle.
After the tax:
3 billion bottles of wine are sold every year. For which, consumers pay $5 per bottle (including the tax) and producers receive $2 per bottle.
Amount of the tax on a bottle of wine:
= price after tax paid by consumer - price after tax received by producer
= $5 - $2
= $3 per bottle
Burden that falls on consumers:
= Paid after tax - Paid before tax
= $5 - $4
= $1
Burden that falls on producers:
= Received before tax - Received after tax
= $4 - $2
= $2
Answer:
The amount of tax per bottle of wine = Rs 3 ; Tax burden on consumers = Re 1 ; Tax burden on producers = Rs 2
Explanation:
The per unit tax illustrated in the question is a case of Indirect Tax. Indirect Tax is a tax whose incidence & impact lie on different people & the burden can be shared between buyers & sellers.
When an indirect tax is applied : the burden is either borne by producers, or is borne by consumers in form of price rise. As after tax, price rise by : Rs 5 - Rs 4 = Re 1 depict tax burden share on consumers. Also after tax, reduction in sale receipt fall by : Rs 4 -Rs 2 = Rs 2 depict the tax burden on producers.
So: Total Tax Burden = Rs 3 ; as summation of tax burden borne by producers & consumers = Rs 2 & Re 1 respectively.
