9 At the Melbourne Cricket Ground, home of the AFL Grand Final, seating is limited to 95

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9 At the Melbourne Cricket Ground, home of the AFL Grand Final, seating is limited to 95 000.

Seeing a golden opportunity to raise revenue, the state government levies a tax of $5 on each Grand Final ticket, to be paid by the buyer. AFL fans, a famously civic-minded lot, dutifully send in the $5 per ticket. Draw a well-labelled graph showing the impact of the tax. On whom does the tax burden fall - the AFL (who sells the tickets), the fans or both?

Explain your answer.

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Related Book For  book-img-for-question

Principles Of Microeconomics

ISBN: 125206

8th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw

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