Suppose the demand for classical music concert tickets is downward sloping and the supply of classical music concert tickets is upward sloping. lovers of classical music persuade congress to impose a price ceiling of $40 per concert ticket. true or false: if the equilibrium price of concert tickets were $50, a price ceiling of $40 will cause more people to attend classical music concerts than if there is no price control.

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Business

Mitchell Myers

17 February, 06:35

Suppose the demand for classical music concert tickets is downward sloping and the supply of classical music concert tickets is upward sloping. lovers of classical music persuade congress to impose a price ceiling of $40 per concert ticket. true or false: if the equilibrium price of concert tickets were $50, a price ceiling of $40 will cause more people to attend classical music concerts than if there is no price control.

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Mila Newton · Answer 1

Price ceiling is an economic term that describes the situation in which the government imposes a legal maximum on the price of a good. If the price ceiling is below the equilibrium price, the price ceiling causes a shortage in the market. So, if the equilibrium price is $40 or below, a price ceiling of $40 has no effect on the number of people attending musical concerts. But, if the equilibrium price in the absence of price controls is above $40 per ticket, then imposing a price ceiling of $40 will cause quantity demanded to exceed quantity supplied. This will result in a shortage of tickets and a decrease in the number of people who attend classical music concerts.