Suppose the government is considering the imposition of a unit tax to be levied on beer producers. The view of companies is that this is just one more cost for them to bear. Consumers disagree saying that the companies pass the taxes on to them in terms of higher prices.
(a) Given that the demand for beer is inelastic, which viewpoint is correct?
(b) Would the burden of the tax be any different if the government levied the
tax on consumers (over the counter) rather than on beer producers?