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, economic surplus will:
A)increase.
B)decrease.
C)stay the same.
D)change, but we do not know the overall effect.

Question

Quizplus · Accepted Answer

If the fire marshal tries to reduce the number of tickets sold, it means that the demand for tickets would be higher than the supply. This would result in fewer tickets being sold at a higher price, reducing consumer surplus. In addition, some potential concertgoers may not be able to attend the concert, resulting in a reduction in total surplus. Therefore, economic surplus would decrease.

If the Market for Concert Tickets Is in Equilibrium and the Fire