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17. When the tax is placed on movies, how much of the total tax revenue is paid by consumers? How much is paid by producers?
17. When the tax is placed on movies, how much of the total tax revenue is paid by consumers? How much is paid by producers? 18. When the tax is placed on pizza, how much of the total tax revenue is paid by consumers? How much is paid by producers? 19. Which causes more deadweight loss, a tax on movies or a tax on pizza? Explain. Part 5 - Stretch Your Thinking- Assume instead that the demand for movies is perfectly inelastic and as shown on the graph to the right. Answer the following questions. 20. How much of the total tax revenue is paid by consumers? 21. How much is paid by producers? 22. How much is the deadweight loss? Explain.
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