Question

The NFL often sets their ticket prices below the equilibrium price. The NFL is setting a ______ that will create a ______.

Answer 1

The NFL is setting a PRICE CEILING that will create a SHORTAGE.
Price ceiling refers to the government imposed price on a particular commodity, for that commodity, the government control how high the price of the commodity should be. Government uses price ceiling to prevent consumers from exploitation. When the price ceiling is set below the equilibrium price, there will be excess demand and this will lead to supply shortage. This is because, producers will produce only a small quantity because of lowered price while the consumers will demand for excess because of the cheap price of the commodity.