A study finds that the noise from rock concerts is harmful; hence, the government imposes a $30 tax on the sale of every unit. T
his 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 $195.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.
The correct answer is: decrease; $195; $190; $165.
A study found the noise from rock concerts to be harmful. To correct the externality created by the concerts, the government imposes a tax $30 on sale of each unit. The price of tickets was initially $190. After the imposition of the corrective tax, the price increased to $195. This increase in price will cause the demand for tickets to decrease. As a result, the number of concert tickets sold will decrease. The socially optimal price of the tickets is $195, as this price eliminates externalities. The private market price is the price which was creating externalities, in this case, it is $190. We can find the price received by the firms by deducting the tax amount from the new price. The price received by the firms is = $195 - $30 = $165
Here, in this case we can state that <em>job evaluation </em>is being exemplified. The Triano Brothers are using job evaluation, so as to have a systematic approach in order to determine value of a job in regards to the several jobs in their organization. The organization attempts to have a orderly comparison in between different jobs as to assess the relative value.
