Suppose that, at an official ticket price of $500, there are 6,000 Justin Timberlake fans wanting to attend his concert, but only 4,000 ticketed seats are available. Which one of the following statements is then TRUE?

A. There will be a surplus of tickets.
B. The market clearing price of the tickets is more than $500.
C. The market clearing price of the tickets is less than $500.
D. There will be scalpers outside the arena selling tickets for $500.


Answer: B

Economics

You might also like to view...

Which area in the above figure equals the producer surplus under perfect price discrimination?

A) A + B + C + D + E + F + G + H + I + J + K + L B) A + B + C + D + E + F + G + H + I + J + K C) A + B + C + D + E + F + G + H D) C + D + E + F + G + H

Economics

The Heckscher-Ohlin model is an alternative to the classical theory of international trade that focuses on the factors of production that countries possess

Indicate whether the statement is true or false

Economics

A change in the price of a good will shift the demand for labor producing that good

Indicate whether the statement is true or false

Economics

The "invisible hand" using Adam Smith's terminology refers to:

a. "behind-the-scenes" policy making to influence how markets allocate scarce resources. b. market forces working through the price mechanism. c. the money supply that serves to keep the economy working smoothly. d. government control of the market. e. the role of innovation in maintaining a steady rate of growth.

Economics