13. The United States imposes an excise tax on the sale of domestic airline tickets. Lets assume...

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13. The United States imposes an excise tax on the sale of domestic airline tickets. Let’s assume that in 2006 the total excise tax was $5.80 per airline ticket (consisting of the $3.30 flight segment tax plus the $2.50 September 11 fee). According to data from the Bureau of Transportation Statistics, in 2006, 656 million passengers traveled on domestic airline trips at an average price of $389.08 per trip. The accompanying table shows the demand schedules for airline trips. The quantity demanded at the average price of $389.08 is actual data; the rest is hypothetical.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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