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?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 9PA

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