Suppose There Is Only One Movie Theatre in a Town

question 58

Multiple Choice

Suppose there is only one movie theatre in a town and the equilibrium price and quantity for movie admissions is $9 and 850 visits per week.Now suppose the government imposes a tax of $2 per movie admission and that the new equilibrium price and quantity are $10.50 and 780 visits per week.What is the weekly direct burden of this tax?

• A)$0
• B)$105
• C)$1170
• D)$1560
• E)$1700

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Definitions:

Expert Systems

Computer programs that use artificial intelligence to mimic the decision-making abilities of a human expert in a specific domain.

Time Standardization

The process of synchronizing clocks and calendars globally to facilitate coordination and communication across different time zones.

Technological Reliance

The extent to which individuals, societies, or organizations depend on technology for functioning and advancements.

Expert Systems

Computer systems that mimic the decision-making abilities of a human expert in a specific field, using a set of programmed rules.