Asked by Kevin Huynh on May 18, 2024
Verified
If the market for concert tickets is in equilibrium and the fire marshal tries to reduce the number of tickets sold,all other things equal,total surplus will decrease.
Total Surplus
A measure of society's overall net advantage resulting from the consumption and production of a good or service, comprised of both consumer and producer surplus.
Fire Marshal
An official responsible for enforcing fire safety codes and regulations, as well as investigating fires to determine their cause.
- Understand how market equilibrium affects efficiency and total surplus.
Verified Answer
BB
Bineta BarryMay 21, 2024
Final Answer :
True
Explanation :
If the fire marshal tries to reduce the number of tickets sold, it would result in a decrease in the quantity of tickets sold, causing a shortage. This would result in an increase in the price of tickets and a decrease in consumer surplus. Producer surplus may also decrease due to the reduced number of tickets sold. Overall, this would lead to a decrease in total surplus.
Learning Objectives
- Understand how market equilibrium affects efficiency and total surplus.
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