> At Fenway Park, home of the Boston Red Sox, seating is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue, the City of Boston levies a per ticket of 5 bucks to be paid by the ticket buyer. Boston sports fans, a famously civic-minded lot, dutifully send in the 5 bucks per ticket. Draw a well-labeled graph showing the impact of the tax. On whom does the tax burden fall - the team's owners, the fans, or both? Why?Now, for this question, my take is that the tax burden fall on the fans, because the fans paid 5 bucks extra on tax, and the government imposes a 5 bucks tax. Hence, it doesn't affect the sellers/team's owners. But from what I've learnt is that tax burden is shared amongst sellers and buyers.I'm equally confused. If it's shared, then who gets to decide the amount buyers and sellers have to split for the tax burden? (If the amount is not provided?) Thank you.
I have been a red sox fan since Yaz was a rookie. If, Fenway sells out for every game and after the tax they still sell out for every game then ticket prices will rise by the full $5 and The fans will bear the full brunt of the tax. If the owners have to lower ticket prices somewhat to sell out then the burden will be shared
