(all the same question)
When Governments Intervene In Markets — Work It Out Consider the market for movie theater tickets shown in the accompanying graph. What is the equilibrium price and quantity? Equilibrium price: $\$$

Equilibrium price: $\$$ Equilibrium quantity: thousand tickets Illustrate graphically what happens to the supply curve if the government imposes a $\$ 2$ per ticket tax on movie theaters. Identify the amount consumers now pay for a ticket and the amount movie theaters get to keep. How is the economic burden shared? Movie goers pay $\$$ per ticket. Theaters keep $\$$ per ticket. The economic burder is shared equally since each side sees its final price change by the same amount. borne by the theaters since they have to pay the tax. borne by movie goers since the theaters will simply add the tax to the price of a ticket.

Show on the graph what happens if instead the government imposes a $\$ 2$ per ticket tax on movie goers. Identify the amount consumers now pay for a ticket and the amount movie theaters get to keep. How is the economic burden shared? Movie goers pay $\$$ per ticket. Theaters keep $\$$ The economic burden is shared equally since each side sees its final price change by the same amount. borne by the movie goers since they have to pay the tax. borne by theaters since the movie goers will refuse to pay more for a ticket. Compare your answer from when the statutory burden was on movie theaters. What impact does the statutory burden of a tax have on the tax incidence? Who bears the economic burden and why? The final incidence of the tax is the statutory incidence. The economic burden will be borne by