Question
At the Scotiabank Arena, home of the Raptors and the Maple Leafs, seating is limited to about 19000.Hence, the number oftickets issued is fixed at
At the Scotiabank Arena, home of the Raptors and the Maple Leafs, seating is limited to about 19000.Hence, the number oftickets issued is fixed at that figure. (Assume that all seats are equally desirableand are sold at the same price.) Seeing a golden opportunity to raise revenue, the City of Torontolevies a per-ticket tax of $5 to be paid by the ticket buyer. Toronto sports fans, a famously civic-minded lot, dutifully send in the $5 per ticket. Draw a well-labelled graph showing the impact of thetax. On whom does the tax burden fallthe team's owners, the fans, or both? Why?
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