Magic Theatre Company produces theatrical performances in the city of Vancouver. Magic company, proposes a new neighbourhood theatre in the city of Vancouver, The government needs to approve the building permit, so it conducts a research study to evaluate the theatre's impact on the surrounding community. The results show the following results:

• the theatres attract traffic, and the cost to the community from the extra traffic is estimated at $5 per ticket.
• the increased foot traffic improves the safety of the surrounding streets, with an estimated benefit to the community of $2 per ticket.

Illustrate (with graph and words) the market for the theatre tickets for the case presented above and describe government policies that would result in an efficient outcome.