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Business, 12.03.2020 05:39 Tracic1972

The British government recently imposed a specific excise taxLOADING... of about $154 per ticket on airline tickets applying to flights to or from London airports. a. Determine the effect of the ticket tax on the market for tickets to fly into and out of London. 1.) Using the line drawing tool, draw a supply curve that illustrates the imposition of the tax. Properly label your line. 2.) Using the point drawing tool, plot the new equilibrium point. Label the point 'E''. Carefully follow the instructions above, and only draw the required objects. b. The equilibrium price of tickets for air flights into and out of cities that are in close proximity to London but are not subject to the new ticket tax will A. increase since passengers will have to pay transport charges to get to London. B. increase since the supply of these airline seats will be less available. C. increase since higher demand for tickets at these locations will increase airline ticket prices. D. decrease since the supply of these airline seats will be less available.

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