The impact of $5 tax on the ticket for match.

Question

At Fenway Park, home of the Boston Red Sox, seating is limited to about 38,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue, the city of Boston levies a per ticket tax of 5$ to be paid by the ticket buyer. Boston sports fans, a famously civic minded lot, dutifully send in the 5$ per ticket. Draw a well labeled graph showing the impact of the tax. On whom does the tax burden fall--the teams owners, fans, or both why?

Answer 1

Question

Chapter 6, Problem 9PA

To determine

The impact of $5 tax on the ticket for match.

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At Fenway Park, home of the Boston Red Sox, seating is limited to about 38,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue, the city of Boston levies a per ticket tax of 5$ to be paid by the ticket buyer. Boston sports fans, a famously civic minded lot, dutifully send in the 5$ per ticket. Draw a well labeled graph showing the impact of the tax. On whom does the tax burden fall--the teams owners, fans, or both why?

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