Question

A large group of fans are upset about the high price of tickets to many events. As a result of their lobbying efforts, a new law caps the maximum ticket price to any sporting event at $50. Assume there are a fixed amount of seats in the stadium, all seats are available to be sold, and the price of tickets before the ceiling was at an equilibrium point above $50. The price ceiling will create a ___________ of tickets, which will be greater if demand is more _______________, and _________ people will attend the events. Group of answer choices

Answer 1

Answer:

The correct words for the blank spaces are: shortage; elastic; the same number of.

Explanation:

In the case the current price represents the equilibrium price and the price ceiling is set below, it will create a shortage of tickets because more fans would like to purchase tickets but there will not be enough supply. Elastic demand implies that demand is more responsive to price changes. Thus, there will be more tickets shortage in those events with more fans. Finally, as the amount of seats is fixed, the supply is inelastic. There will always be the same number of tickets available.

Answer 2

Answer: Assuming there are a fixed amount of seats in the stadium, all seats are available to be sold, and the price of tickets before the ceiling was at an equilibrium point above $50.

The price ceiling will create a SHORTAGE of tickets, which will be greater if demand is more ELASTIC, and THE SAME NUMBER OF people will attend the events. Group of answer choices