Suppose that the local government of Tulsa decides to institute a tax on soda consumers. Before the tax, 35 billion liters of soda were sold every year at a price of $11 per liter. After the tax, 30 billion liters of soda are sold every year; consumers pay $16 per liter (including the tax), and producers receive $6 per liter.
The amount of the tax on a liter of soda is
$
per liter. Of this amount, the burden that falls on consumers is
$
per liter, and the burden that falls on producers is
$
per liter.