Suppose the government decides to enact a new tax on movie tickets. What will happen in the market for movie tickets? (Note: Neither the supply curve nor the demand curve for movie tickets is perfectly inelastic.) A. The price consumers pay for movie tickets will be higher. B. The tax on movie tickets will cause a deadweight loss. C. The quantity of movie tickets sold will decrease. D. The price producers receive for movie tickets will be higher.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?