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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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A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the
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Answer:

The team earns $405 in revenue for each game and $2430 revenue each season. With total costs of $3300 each season, the team finishes the season with $ -870 of profit

Explanation:

TEAM EARNS $ 10 FOR EACH TICKET AND 30 PEOPLE ATTEND A GAME AND SPEND $7 ON CONCESSION STAND BUT TEAM RECEIVE ONLY $ 3.5 OUT OF THIS SO

PER CUSTOMER REVENUE OF TEAM= $13.5

TOTAL REVENUE PER GAME = 13.5 * 30= $405

FOR A SEASON OF 6 GAMES, TOTAL REVENUE= 405* 6=$2430

PROFIT = REVENUE- COST= 2430- 3300 = -870 $

THAT MEANS LOSS OF 870 $

The team earns $405 in revenue for each game and $2430 revenue each season. With total costs of $..3300...... each season, the team finishes the season with $ -870 of profit or loss of $870

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