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1. Some states and localities have laws that make it illegal to resell event tickets at prices higher than the original, legal market price. What would be the positive and negative consequences of such a law? Assume the legal price is below the equilibrium price.
2. Suppose that the federal government places a binding price floor on chocolate. To help support the price floor, the government purchases all of the leftover chocolate that consumers do not buy. If the price floor remains in place for a number of years, what do you expect to happen to each of the following?
A) Quantity of chocolate demanded by consumers.
B) Quantity of chocolate supplied by producers.
C) Quantity of chocolate purchased by the government.
Explain based on what we have learned about the scientific method and designing a scientific experiment.
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