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) $2.5 million
D) $1.5 million
Correct Answer:
Verified
Correct Answer:
Verified
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