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 soccer match at the stadium is $10. Which of the following is true?
A. The demand for each football game must be more than the demand for each soccer match.
B. The supply of soccer matches must be less elastic than the supply of football games.
C. The demand for each soccer game must be greater than the demand for each football game.
D. Football games must be more expensive to produce than a soccer match.
Answer: A
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Refer to Figure 15-13. From the monopoly graph above, identify the area representing the deadweight loss
Would the deadweight loss be larger if the demand curve was more elastic or less elastic? What will be an ideal response?
Economics is:
a. concerned with the problem of scarce resources combined with unlimited wants. b. the study of how to make money in the stock market. c. highly theoretical and has little practical application. d. primarily concerned with day-to-day business decision making. e. a decision making process involving individuals and firms rather than governments.
________: a sustained rise in the general price level
Fill in the blank(s) with correct word
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. Which of the following statements is TRUE about the effect the Medicare subsidy has had on the consumption of medical services?
A) The amount of medical services provided has decreased from Q0 to Qd as a result of the subsidy. B) The amount of medical services provided has increased from Q0 to QM as a result of the subsidy. C) The amount of medical services provided has increased from Qd to QM as a result of the subsidy. D) The amount of medical services provided has remained unchanged as a result of the subsidy.