Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. (c) Can you identify any government revenues? (d) Is there any inefficiency, and if so, can you define it and label it on the graph? (e) If the producer has an inelastic supply curve, which market participant has the bigger tax burden? Explain.

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Q: (V) Total surplus after tax Answer:

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Q: Question 10

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A: We are going to explain and answer how to calculate tax burden on consumer to answer this question.

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