1)If the equilibrium price for metro tickets is $2.50 for 450,000 tickets and a non-binding maximum price is imposed by the City's government at $3.50, the eventual result in the market will be a (an):

(a)Shortage

(b)Surplus

(c)Equilibrium

(d)Depletion of resources

2)Which of the following statements would be true about the price set by the City government in the market referenced in Q#1 above?

(a)It is not a legally binding price on the metro riders and the metro company

(b)It does not prevent the clearance of the market by the interaction of market forces

(c)The surplus of metro tickets initially created in the market will disappear as ticket prices fall

(d)All of the above