Consider the market for movie theater tickets shown in the accompanying graph. What is the equilibrium price and quantity? Illustrate graphically what happens to the supply curve if the government...

Consider the market for movie theater tickets shown in the accompanying graph. What is the equilibrium price and quantity? Illustrate graphically what happens to the supply curve if the government imposes a $2 per ticket tax on movie theaters. Identify the amount consumers now pay for a ticket and the amount movie theaters get to keep. How is the economic burden shared?



May 26, 2022
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