1.

The graph below shows the market for the MTA one-way tickets during off-peak hours.

2.1. The authorities concerned with the wellbeing of the passengers cap the price per ticket to $8.

What is the effect of this policy on the market for MTA one-way off-peak tickets? Briefly

explain.

A.

2.2. The MTA administration (worried that its revenues won't cover its operating cost)

successfully lobby the authorities to institute a price floor of SS. What is the effect of this policy?

Briefly explain.