Asked by Massiel Toribio Peralta on May 10, 2024
Verified
People scalping tickets for a rock concert can sell their tickets for at least a normal profit
A) any time the rock group is popular.
B) when the price set by the concert hall is less than the market equilibrium price.
C) when prices are too high.
D) only when there is excess supply.
Scalping Tickets
The practice of buying tickets to an event and reselling them at a higher price, typically without authorization.
Market Equilibrium Price
The price at which the quantity of goods supplied equals the quantity of goods demanded in the market.
Normal Profit
The level of profit that is just sufficient to keep an entrepreneur in business, equaling total revenues minus explicit and implicit costs.
- Apprehend the repercussions of market interventions for consumers and producers.
- Assess the impact of market dynamics on price setting and resource distribution.
Verified Answer
AA
adedayo adelekeMay 17, 2024
Final Answer :
B
Explanation :
Scalpers can sell their tickets for at least a normal profit when the price set by the concert hall is less than the market equilibrium price. This situation creates excess demand at the official price, allowing scalpers to sell at higher prices.
Learning Objectives
- Apprehend the repercussions of market interventions for consumers and producers.
- Assess the impact of market dynamics on price setting and resource distribution.