(Solved): Suppose that the local govemment of Raleigh decides to institute a tax on cider consumers. Before th ...

Suppose that the local govemment of Raleigh decides to institute a tax on cider consumers. Before the tax, 15 billion cases of cider were sold every year at a price of $10 per case. After the tax, 8 billion cases of cider are sold every year; consumers pay $12 per case ( including the tax), and producers receive $8 per case