Suppose the demand curve for movie tickets has unitary


Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic. If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax? Show Work.

A) $1.5 million B) $3 million C) $18 million D) $2.5 million

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Suppose the demand curve for movie tickets has unitary
Reference No:- TGS0944539

Expected delivery within 24 Hours