Economics (AS & A Level) · Oct / Nov 2022 · Paper 11 · Question 17
9708Methods and effects of government intervention in markets
A concert arena has a fixed capacity that allows it to sell 10 000 tickets for a concert. The current equilibrium price for a ticket is $10. The owners of the arena decide to set a minimum price for a ticket. Under which conditions will there be the most unsold tickets?
- Aminimum ticket price ($) 11; price elasticity of demand for tickets inelastic
- Bminimum ticket price ($) 11; price elasticity of demand for tickets elastic
- Cminimum ticket price ($) 12; price elasticity of demand for tickets inelastic
- Dminimum ticket price ($) 12; price elasticity of demand for tickets elastic
As printed in the paper
Show the answer
Correct answer: D. minimum ticket price ($) 12; price elasticity of demand for tickets elastic
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.