The demand and supply of movie tickets are given by qd = 30 – 3p and qs = 4p – 19, where p is the price per ticket and q is in thousands of tickets. if the government places a $1 tax on each ticket, the prices that consumers pay with and without the tax are and respectively.

The answer is: If the market for movie tickets is at an equilibrium point were QD=QS, then the price of a ticket without a tax is $7. With the new tax the price for a movie ticket will increase to 8$.

Explanation:

If the market is at an equilibrium point (without the new tax), then QS=QD, so:

                    4P - 19 = 30 - 3P

                    4P + 3P = 30 + 19

                    7P = 49

                    P = 7

The price of a movie ticket without the new tax is $7, with the new tax (+ 1$) the price will increase to 8$.

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