40 points) The market for movie tickets is perfectly competitive. The market demand and supply are given by the two following equations:

=303

=419

(12 points) The government is planning to impose a tax on sellers of

dollars per unit.

What share of the tax is paid by buyers and what share is paid by sellers? Round to the second decimal point for each number. Use your answer to quantify how a $1 tax increase affects the equilibrium prices paid by buyers and received by sellers (hint: we know that buyers pay more and sellers receive less under tax. By how much each party would worse off?)