Question

​the state government of dalmatia noticed that whenever its baseball team played a match in any of the local stadiums, the prices of tickets became too high. it decided to impose a price ceiling on the ticket prices. the exhibit given below shows the demand curve for and the supply curve of baseball game tickets in dalmatia. if the government were to impose a binding price ceiling, it should set the price at:

Answer 1

If the government were to impose a binding price ceiling, it should set the price at $80 per ticket, which would give rise to a shortage of 16,000 tickets. The $80 per ticket price would bind the market for the tickets and that price is set below the equilibrium price.