If the equilibrium price of an airline ticket is $400 and the government imposes a price floor of $500 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium.

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price, such as $500 in this case, leads to a surplus of airline tickets because the price is too high for many consumers, resulting in fewer tickets sold compared to the market equilibrium at $400.

If the Equilibrium Price of an Airline Ticket Is $400