Ask Question
BusinessBusiness
11 January, 13:25

When a price floor is placed on the price of movie tickets, the consumer surplus relative to the free market equilibrium will more likely increase. decrease. remain the same. increase by 100%. decrease by 100%?

+1
Answers (2)
  1. 11 January, 14:18
    0
    It will definitely decrease, as consumers will have to pay more and a deadweight loss will be present. Search up 'price floors and deadweight loss'.
  2. 11 January, 16:48
    0
    The correct answer is letter "B": decrease.

    Explanation:

    Price floors are limits placed usually by the government in order to set a minimum for the price of goods or services being traded. This action is done to make sure a minimum level of revenue for producers and that those goods are being traded at a fair price. If the price floors are removed, no matter under what other circumstances, the price levels will fall since consumers will be allowed to offer less money for the same goods.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When a price floor is placed on the price of movie tickets, the consumer surplus relative to the free market equilibrium will more likely ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June
Answers (1)
The application of moral and ethical analysis to a situation is usually called ethical. Ethics is rooted in the idea that every person owes certain responsibilities to others and the planet. Ethics focuses on the consequences of a decision.
Answers (1)
A large stock dividend: a. Results in a transfer of retained earnings to common stock and additional paid-in capital. b. Reduces the par value per share by the percentage of the additional shares issued. c.
Answers (1)
The debate on the effects of raising the minimum wage is ongoing. A few years ago, Seattle, Los Angeles, and San Francisco passed laws to gradually raise the minimum wage to $15/hour. Beaudry, Paul, David A. Green, and Ben M.
Answers (1)
At the beginning of the month, the Painting Department of Skye Manufacturing had 40,000 units in inventory, 80% complete as to materials, and 25% complete as to conversion.
Answers (1)
New Questions in Business
A business selling a single service or product needs to indicate as such on the Item List or in the Easy Step Interview.
Answers (1)
What is one purpose of writing a business plan before entering the market? 1/to prove that the new company will be successful 2/to show that the enterprise is realistically based 3/to have a useful tool when applying for funding 4/to differentiate
Answers (1)
When is it appropriate to use an absolute reference? a. when the information in a formula always relates to the same cell b. when the information in a formula changes to relate to the cells next to the specified location c.
Answers (1)
A company would like to produce 5000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the product is $1.50 per product.
Answers (1)
During Zach's first visit of the year he incurred a $500 bill. Who pays this bill
Answers (1)
Home » Business » When a price floor is placed on the price of movie tickets, the consumer surplus relative to the free market equilibrium will more likely increase. decrease. remain the same. increase by 100%. decrease by 100%?
Sign Up Forgot Password?