Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic
If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax? A) $18 million
B) $3 million
C) $2.5 million
D) $1.5 million
C
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What is an infant industry?
(A) An industry that has tariff protection. (B) An inefficient but necessary industry. (C) An industry making products for infants and children. (D) A young or developing industry.
If you expect a general price increase of 5% this year and the price of the hamburgers you sell increases by 10%, you would conclude that the relative price of your good has
A) declined, and you would increase your output. B) declined, and you would decrease your output. C) increased, and you would increase your output. D) increased, and you would decrease your output.