Suppose the Demand Curve for Movie Tickets Has Unitary Price

question 5

Multiple Choice

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?

• A) $18 million
• B) $3 million
• C) $2.7 million
• D) $1.5 million

---

Definitions:

Get An Interview

The process of securing a meeting or discussion with a potential employer as a candidate for a job.

Compelling Narrative

A story or account that is interesting and engaging, often making it persuasive or memorable.

Networking

The action or process of interacting with others to exchange information and develop professional or social contacts.

Career Search

The process of looking for employment opportunities, aligning one’s skills and interests with available positions.