Asked by Ronald Blair on Jun 29, 2024
Verified
Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day.This suggests that:
A) the price of the tickets is set by the football teams.
B) the price of the tickets is set below the equilibrium level.
C) the football stadium is relatively small.
D) the demand for the tickets is highly price elastic.
E) the price of the tickets is set above the equilibrium level.
Equilibrium Level
The state of balance where demand equals supply in a market, resulting in an optimal distribution of resources without excess supply or demand.
- Understand the concept of market equilibrium and how price ceilings and floors affect market outcomes.
- Understand the concepts of substitution and income effects in response to price changes.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
B
Explanation :
When tickets are sold out in advance of game day, it suggests that the quantity demanded exceeds the quantity supplied at the current price, indicating that the price is set below the equilibrium level where supply would equal demand.
Learning Objectives
- Understand the concept of market equilibrium and how price ceilings and floors affect market outcomes.
- Understand the concepts of substitution and income effects in response to price changes.