Ask Question
BusinessBusiness
4 December, 16:00

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%?

+2
Answers (2)
  1. 4 December, 16:15
    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.
  2. 4 December, 16:27
    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'.
Know the Answer?
Not Sure About the Answer?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The unemployment rate rises any time there is an increase in the number of unemployed. select one: a. True b. False
Answers (1)
Your servers earn an average of $250, $375, $435, $515, $385, $220, $280, $315, and $440 per week. What is the mean server earning per week?
Answers (1)
A bank has three assets. It has $75 million invested in consumer loans with a three-year duration, $39 million invested in T-bonds with a 16-year duration, and $18 million in six-month maturity T-bills.
Answers (1)
True or false: an expansionary monetary policy can promote long-term growth.
Answers (1)
A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct? a. There are increasing returns to scaleb. The long-run average total cost curve is flatc.
Answers (1)
New Questions in Business
The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.
Answers (1)
Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520
Answers (1)
When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false
Answers (1)
What are the security and management issues concerning virtual offices, especially hooked up into large virtual networks?
Answers (1)
Burns Industries currently manufactures and sells 20.000 power saws per month, although it has the capacity to produce 35,000 units per month.
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?