question archive The price of tickets for a Clay Aiken concert is $50
The price of tickets for a Clay Aiken concert is $50
Subject:MarketingPrice:2.88 Bought3
The price of tickets for a Clay Aiken concert is $50. At that price, tickets sell out almost immediately after they are offered for sale. After tickets sell out, there are over 20,000 people who still want to buy tickets to the concert at the $50 price. It follows that
A. the market equilibrium price of tickets to the concert is $50.
B. the market equilibrium price of tickets to the concert exceeds $50.
C. the market equilibrium price of tickets to the concert is less than $50.
D. at the $50 price there is a surplus of tickets on the market.
E. both C and D.
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- The correct answer is: B. the market equilibrium price of tickets to the concert exceeds $50.
If all the tickets are sold out at the existing price of $50, and there are over 20,000 people who still want to buy tickets at this price of $50, it means that the market demand is greater than the market supply at the existing price. This happens when the market price is below the equilibrium price.
