Business, 17.03.2020 04:41, thicklooney

A study finds that the noise from airplanes is harmful; hence, the government imposes a $25 tax on the sale of every airplane. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, airplane tickets regularly sold for $190. After the tax is in place, the market price for airplane tickets rises to $200.A study finds that the noise from airplanes is harmful; hence, the government imposes a $25 tax on the sale of every airplane. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, airplane tickets regularly sold for $190. After the tax is in place, the market price for airplane tickets rises to $200.a. Because of the tax, the number of airplane tickets sold will decrease . b. The socially optimal price of airplane tickets is $ c. The private market price is $ d. A firm selling airplane tickets receives $ after it pays the tax.

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A study finds that the noise from airplanes is harmful; hence, the government imposes a $25 tax on t...