The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?
A. The supply of baseball games must be less elastic than the supply of football games.
B. The demand for each baseball game must be lower than the demand for each football game.
C. Football games must be more expensive to produce than baseball games.
D. The demand for baseball games must be more elastic than the demand for football games.
Answer: B
You might also like to view...
Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education
His plan is likely to A) slow economic growth because it includes a provision for private education. B) have no effect on economic growth because property rights are not changed. C) speed economic growth as the quality of resources improve. D) fail because the provision for private education limits government involvement in education. E) have no effect on economic growth because government spending cannot affect the economic growth rate.
Refer to the table below. If Tacos R Us sells its taco shells and taco sauce as a package, what is the profit-maximizing price for the bundle?
Tacos R Us sells two different types of products; taco shells and taco sauce. For simplicity, assume that the marginal cost of each product is $0, so that Tacos R Us' total revenue is also its total profit.
A) $7
B) $18
C) $10
D) $9
Centralization of decision-making in a firm is a good idea when:
a. the people who produce the information also have decision-making skills. b. all the information comes from internal sources. c. the incentives of the decision-makers is not aligned with the firm's share holders. d. those who have the relevant information are not equipped to analyze it.
Marginal revenue, average revenue, and price are all equal for a monopolist
a. True b. False