Question: For each of the taxes below, indicate whether you think the tax burden will be borne primarily by consumers or producers. Also, how successful do you think each tax will be in raising revenues?
a. A city tax on the use of paper bags in supermarkets. Consumers have the option of asking for plastic bags or bringing their own bags.
b. An increase in the national gasoline tax.
c. A tax on paper copies of textbooks when online versions of the books are available. Discuss why students' preferences (i.e., whether they are willing to use online texts) are important in determining the effect of the tax.