5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10.Price (P) of airline tickets(in dollars per ticket)OO2302001902850 3000Based on the graph, which of the following statements is true?Swith taxDSnono taxFigure 14Image author createdQuantity (Q) of airline tickets(thousands per day)The tax is imposed on passengers (i.e., the demand side of the market for plane tickets).Based on the graph, we cannot determine whether the tax is imposed on the airlines or on passengers.The tax is imposed on airlines (i.e., the supply side of the market for plane tickets).The tax is imposed on both sides of the market for plane tickets.

Tax imposed on producer lead to a shift in supply curve leftwards but the incidence of tax can be…

5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. Price (P) of airline tickets (in dollars per ticket) 230 200 190 2850 3000 Swith tax Sno tax Figure 14 Quantity (Q) of airline tickets (thousands per day)

5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. Price (P) of airline tickets (in dollars per ticket) 230 200 190 2850 3000 Swith tax Sno tax Figure 14 Quantity (Q) of airline tickets (thousands per day)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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