Question The VOX Cinemas City Centre Ajman has seating limited to 1000. Hence, the number of tickets issued is fixed at that figure. Assume that the Ajman municipality decides to impose a per ticket tax of 5 AED to be paid by the ticket buyer. a) Draw a graph showing the impact of the tax. b) On whom does the tax burden fall – the owners of the VOX Cinemas owners, the buyers of the tickets, or both? Why?

Question The VOX Cinemas City Centre Ajman has seating limited to 1000. Hence, the number of tickets issued is fixed at that figure. Assume that the Ajman municipality decides to impose a per ticket tax of 5 AED to be paid by the ticket buyer. a) Draw a graph showing the impact of the tax. b) On whom does the tax burden fall – the owners of the VOX Cinemas owners, the buyers of the tickets, or both? Why?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 7P

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