Suppose that, at an official ticket price of $480, 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 scalpers outside the arena selling tickets for $480.
B) There will be a surplus of tickets.
C) The market clearing price of the tickets is less than $480.
D) The market clearing price of the tickets is more than $480.
Answer: D
You might also like to view...
The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.
A 50 percent tax on the profits of a monopolist will
A. be totally shifted to the consumer. B. raise price and lower quantity. C. cause no change in profit-maximizing price and quantity. D. change price but not quantity.
On a linear demand curve, demand is ________ at large quantities than it is at the middle of the demand curve.
A. more elastic B. less elastic C. equally elastic D. There is insufficient information in the question.
In a store that sells souvenirs, suppose an agent receives a $1 commission for each unit sold, and the principal receives the residual profit. As a result
A) joint profit is maximized. B) the agent will sell until the principal's marginal cost equals $1. C) no agent would enter into such a contract. D) the agent wishes to sell as many units as he can.