1. Problems and Applications Q1 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 $30, a price ceiling of $40 will cause more people to attend classical music concerts than if there is no price control. True False

False

Explanation:

As the ceiling of 40 dollar is above the equilibrium it will have no bidding It will have no impact the agents (musician offering the concerts and attendants) will not be affected for the policy.

Only when teh market equilibrium price increase as above this level it will be biddding and generate a contraction of the supply as their will not provide for 40 dollar when the market price is above this amount.

answer; /// i do believe the correct answer is (possession utility);

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.