Bay Town Enacts an Ordinance to Allow Only a Few

question 8

Multiple Choice

Bay Town enacts an ordinance to allow only a few recreational boating outfits to op-er-ate in certain areas of its harbor,for the purpose of reducing traffic. A court would likely review this ordinance under the principles of

• A)equal protection.
• B)free exercise.
• C)due process.
• D)free speech

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, due to higher market price.

Individual Producer Surplus

The net gain to an individual seller from selling a good; equal to the difference between the price received and the seller’s cost.

Phantom Tickets

Tickets for an event that are sold or promised to a customer but actually do not exist or are not available.

Producer Surplus

Producer surplus refers to the difference between what producers are willing to accept for a good or service versus what they actually receive, essentially measuring the benefit or surplus producers gain from transactions.