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Before the price controls were imposed, Congress decided that everyone should have easier access to movie theaters and decided they wanted to repave roads. Therefore
Before the price controls were imposed, Congress decided that everyone should have easier access to movie theaters and decided they wanted to repave roads. Therefore they decide to impose a $3 tax/ticket. a. Who would you predict bears the burden of incidence (Ticket Buyers/AMC)? Ticket buyers b. What is the new market price for tickets? $ c. How much tax revenue do they make? $ d. What is the consumer and producer surplus in this taxed market? e. How much deadweight loss?In January 2018, the following showed the demand and supply schedules for Movie Tickets: Movies Tickets Quantity Demanded Quantity Supplied $14 1 million 7 million 12 3 6 10 5 5 8 7 4 6 9 3 A 11 2 13
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