Question

Imagine that in the frame of Azerbaijan National Football Championship Nefthci and Karabakh football teams will have a match in “Shafa Stadium” 31st December 2021. Assume that the stadium has 10,000 seats available and number of seats is fixed. To increase the tax revenue, government authorities impose tax on buyers (fans) at the amount of $2 per seat. Please, explain who will pay the tax by graphic illustration and logical justification. Keep in mind that the stadium is a private property.

Answer 1

The fans as they purchase tickets

Step-by-step explanation:

The government has imposed a $2 tax per seat. The stadium management will increase the price of tickets per seat by at least $2. It means the customers (fans) will pay an extra amount per seat to cater for the taxes.

The stadium management will act as a tax intermediary. They will collect the $2 per seat tax from the ticket sales and remit it to the government.