Giving in to pressure from voters who charge that local theater owners are gouging their customers with
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Giving in to pressure from voters who charge that local theater owners are gouging their customers with ticket prices as high as $10 per movie, the city council of a Midwestern city imposes a price ceiling of $2 on all movies. What effect is this likely to have on the market for movies in this particular city? What will happen to the quantity of tickets demanded?
What will happen to the quantity supplied? Who gains? Who loses?
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