A study finds that the noise from rock concerts is harmful; hence, the government imposes a $25 tax on the sale of every rock concert. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, concert tickets regularly sold for $190. After the tax is in place, the market price for concert tickets rises to $205.
Because of the tax, the number of concert tickets sold will .
The socially optimal price of concert tickets is $ .
The private market price is $ .
A firm selling concert tickets receives $ after it pays the tax.
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A study finds that the noise from rock concerts is harmful; hence, the government imposes a $25 tax...
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