Suppose the equilibrium price of movie theater tickets is $4.50 per ticket. The campus theater currently has its tickets priced at $3.00 per ticket. We would expect to find:

Question

Quizplus · Accepted Answer

The campus theater currently has tickets priced below the market equilibrium price, so we would expect there to be excess demand for the tickets. As a result, we would expect the theater to increase its ticket prices, bringing them closer to the market equilibrium of $4.50 per ticket. Therefore, excess demand and the price of tickets rising is the best choice.

Suppose the Equilibrium Price of Movie Theater Tickets Is $4