2. In a market for concert tickets, if the government removes all regulations and allows ticket prices to be determined solely by the forces of demand and supply, what would likely happen to consumer surplus?
A) Consumer surplus will decrease because ticket prices will rise, reducing consumer
welfare.
B) Consumer surplus will increase as ticket prices change toward the market equilibrium
price.
C) Consumer surplus will remain unchanged as the equilibrium price remains the same
regardless of regulation.
D) Consumer surplus will fluctuate unpredictably due to changes in market conditions.
E) Consumer surplus will increase initially, but then decrease as sellers exploit the absence of
regulations to charge higher prices.