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nydimaria [60]
3 years ago
6

Suppose that, at an official ticket price of $480, there are 6,000 Justin Timberlake fans wanting to attend his concert, but onl

y 4,000 ticketed seats are available. Which one of the following statements is then TRUE?
A. The market clearing price of the tickets is more than $480.
B. There will be scalpers outside the arena selling tickets for $480.
C. There will be a surplus of tickets.
D. The market clearing price of the tickets is less than $480.
Business
1 answer:
Nonamiya [84]3 years ago
6 0

Answer:

A. The market clearing price of the tickets is more than $480.

Explanation:

Market-clearing price is a level where the quantity demanded of a product matches or the quantity supplied. At this price, A product or service does not experience any surplus or shortages.  It is the price where the demand curve and the supply curve intersect. The market-clearing price is the same as the equilibrium price.

As the price of $480, the demand for the show is at 6000, but supply is at 4000. There is a surplus in demand. The price of $480 is attractive to more people than supply can handle. Matching supply and demand would require the price to be set above the $480.

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