We Can Show the Impact of a Per-Unit Tax on Tickets

question 6

Multiple Choice

We can show the impact of a per-unit tax on tickets in MLB as a:

• A) Rightward shift of the demand curve.
• B) Increase in fixed costs.
• C) Leftward shift of the supply curve.
• D) Rightward shift of the supply curve.

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Definitions:

Price

The sum of money needed to buy a product or service.

Competitive Price-Taker

A firm in a competitive market that has no ability to influence the price of the product it sells; it must take the market price as given.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.

Total Cost

The sum of all costs incurred in producing a good or service, including both fixed and variable costs.