5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. Price (P) of airline tickets (in dollars per ticket) 230 200 190 2850 3000 Swith tax Sno tax Figure 14 Quantity (Q) of airline tickets (thousands per day)

Macroeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter4: Demand And Demand: Applications And Extensions
Section: Chapter Questions
Problem 5CQ
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5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10.
Price (P) of airline tickets
(in dollars per ticket)
OO
230
200
190
2850 3000
Based on the graph, which of the following statements is true?
Swith tax
D
Sno
no tax
Figure 14
Image author created
Quantity (Q) of airline tickets
(thousands per day)
The tax is imposed on passengers (i.e., the demand side of the market for plane tickets).
Based on the graph, we cannot determine whether the tax is imposed on the airlines or on passengers.
The tax is imposed on airlines (i.e., the supply side of the market for plane tickets).
The tax is imposed on both sides of the market for plane tickets.
Transcribed Image Text:5) The following graph shows the effect of a per-ticket tax on plane tickets from Boston to Tampa. Use the graph to answer questions 5 to 10. Price (P) of airline tickets (in dollars per ticket) OO 230 200 190 2850 3000 Based on the graph, which of the following statements is true? Swith tax D Sno no tax Figure 14 Image author created Quantity (Q) of airline tickets (thousands per day) The tax is imposed on passengers (i.e., the demand side of the market for plane tickets). Based on the graph, we cannot determine whether the tax is imposed on the airlines or on passengers. The tax is imposed on airlines (i.e., the supply side of the market for plane tickets). The tax is imposed on both sides of the market for plane tickets.
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