The quantity of tickets demanded to the Super Bowl is always greater than the quantity supplied. Which of the following in the best explanation why the National Football League does not raise the price of tickets to the level where the quantity demanded

equals the quantity supplied?

A) Raising the price would reduce the demand for tickets; there would then be a surplus and the game would not sell out.
B) The cost of raising the price and printing new tickets would exceed the revenue the NFL would receive from higher ticket prices.
C) The demand for Super Bowl tickets is elastic; raising the price would reduce total revenue.
D) The NFL is concerned that raising ticket prices would be considered unfair.


Answer: D

Economics

You might also like to view...

The table above shows four methods for producing 10 computer desks a day. Of the four methods, ________ technologically inefficient

A) B and C are B) B is C) D is D) A and B are

Economics

For a worker to be potentially available, he or she must

A) know about the jobs available at a particular firm. B) be in the relevant geographic market and be willing to work for minimum wage. C) have most of the skills required by the firm only. D) have the skills required by the firm and be in the relevant geographic market.

Economics

Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year, your purchase of the shoes would:

a. make you an inflation winner as you saved $5 on the shoes. b. make you an inflation loser as you paid $5 more than you should have for the shoes. c. not be affected at all by the inflation rate. d. be taxed according to COLA adjustments. e. make you an inflation loser because of bracket creep.

Economics

Assuming demand is a straight line, the equation of the inverse demand curve is represented as

A. P = a - bQd. B. Q = a - bPd. C. P - Qd = a + b. D. Qd = a + bP.

Economics