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QUESTION

Seeing a golden opportunity to increase its revenue, assume the City of Boston has decided to levy a per ticket tax of $5, to be paid by the ticket...

Seeing a golden opportunity to increase its revenue, assume the City of Boston has decided to levy a per ticket tax of $5, to be paid by the ticket buyer. Boston sports fans, a famously civic-minded lot, dutifully send in the $5 per ticket. Draw a well-labeled graph showing the impact of the tax. On whom does the tax burden fallbuyers, sellers, or both? Why?

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