Asked by
Vjollca Gjidia
on Dec 08, 2024
Verified
Refer to Scenario 3.1. In response to complaints from movie theater owners, the government removes an entertainment tax on movie tickets, but there are no additional taxes levied on streaming movies. This would lead to
A) a decrease in the price of movie tickets, but no change in the price of streaming movies.
B) a decrease in the price of a movie ticket and an increase in the price of streaming movies.
C) a decrease in the price of movie tickets and the price of streaming movies.
D) no change in the price of a movie ticket and a decrease in the price of streaming movies.
Entertainment Tax
A tax imposed on services related to entertainment, such as movie tickets, shows, and sporting events, typically to raise revenue for local or national governments.
Streaming Movies
The process of watching films over the internet without downloading them, provided by various online platforms.
Movie Tickets
Small documents or electronic codes that grant the holder access to view a film in a cinema.
- Analyze the effects of government policies on market prices and quantities.
Verified Answer
JP
Learning Objectives
- Analyze the effects of government policies on market prices and quantities.