Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 14

There are 10 000 tickets available to watch a sports final at a national stadium. The initial market equilibrium ticket price is $20. The government decides to fix an effective minimum price for the tickets. Under which conditions will the consumer surplus for the tickets decrease the most as a result of the minimum price?

1. Aminimum price level $18, price elasticity of demand for tickets –0.5
2. Bminimum price level $18, price elasticity of demand for tickets –1.5
3. Cminimum price level $22, price elasticity of demand for tickets –0.5
4. Dminimum price level $22, price elasticity of demand for tickets –1.5

As printed in the paper