Question

The 2005 boston globe article discussing ticket scalping points out that the price people will pay for tickets will rise when select one:
a. Supply and demand are both limited.
b. Supply is limited and demand is not limited.
c. Supply is limited and demand is not limited.
d. Supply and demand are both not limited

Answer 1

Answer: c). supply is limited and demand is not limited

Explanation: When supply of a good is limited while its demand is not limited as rise in the price of the good, will not lead to a substantial decline in the quantity. The 2005 boston globe article discussing ticket scalping points out that the price people will pay for tickets will rise when supply is limited and demand is not limited. This limited supply will induce consumers to compete among themselves and pay a higher price in order to get the limited supply.