1. Suppose the supply of heavy metal concert tickets is upward sloping and the demand for heavy metal concert tickets is downward sloping. Heavy metal enthusiasts convince Congress to impose a price ceiling of $50 per ticket. Suppose the equilibrium price of concert tickets was $70 per ticket. What will be the effect of the $50 per ticket price ceiling? A. There will be fewer people attending heavy metal concerts compared to if there wasn’t a price ceiling. B. There will be no change in concert attendance compared to if there wasn’t a price ceiling. C. There will be more people attending heavy metal concerts compared to if there wasn’t a price ceiling. D. None of the answers. 2. Suppose the government imposes a $50 tax on OLED displays. If the demand curve for OLED displays were perfectly inelastic, then how much does the price paid by consumers rise? A. Indeterminate based on the information provided. B. By exactly $50. C. By less than $50. D. By more than $50.
1. Suppose the supply of heavy metal concert tickets is upward sloping and the demand for heavy metal concert tickets is downward sloping. Heavy metal enthusiasts convince Congress to impose a
A. There will be fewer people attending heavy metal concerts compared to if there wasn’t a price ceiling.
B. There will be no change in concert attendance compared to if there wasn’t a price ceiling.
C. There will be more people attending heavy metal concerts compared to if there wasn’t a price ceiling.
D. None of the answers.
2. Suppose the government imposes a $50 tax on OLED displays. If the demand curve for OLED displays were perfectly inelastic, then how much does the price paid by consumers rise?
A. Indeterminate based on the information provided.
B. By exactly $50.
C. By less than $50.
D. By more than $50.
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