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Now let's look at a new example.
The graph on the left shows the supply and demand curves for a string of struggling movie theaters, all in the same city. The current equilibrium is $8 per movie ticket, with 1,800 people attending movies.
The city government is worried that movie theaters will go out of business, reducing the entertainment options available to citizens, so it decides to impose a price floor of $12 per ticket, as shown in the graph on the left.
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