There are 10 000 tickets on sale for a sports final at a national stadium. The original market equilibrium price of each ticket is $20. The government chooses to set a binding minimum price for the tickets. Under which conditions will consumer surplus for the tickets fall by the greatest amount as a result of the minimum price?
- Aminimum price $18, price elasticity of demand –0.5
- Bminimum price $18, price elasticity of demand –1.5
- Cminimum price $22, price elasticity of demand –0.5
- Dminimum price $22, price elasticity of demand –1.5