A university’s football stadium is never more than half-full during football games. this indicates

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A university’s football stadium is never more than half-full
during football games. This indicates

a)the ticket price is above the equilibrium price.

b)the ticket price is below the equilibrium price.

c)the ticket price is at the equilibrium price.

d)nothing about the equilibrium price.

e)ticket scalping will most likely occur.

Answer

Option A.

  • It is given that, the university’s football stadium is never
    more than half full during football games.
  • This shows that, the price of the ticket is above the
    equilibrium price.
  • We know that when the price of any good increases above the
    equilibrium price level, then the quantity demanded falls while the
    quantity supplied rises.
  • Similarly, when the price of tickets rise above the equilibrium
    price level, the quantity of tickets demanded will fall and hence
    the number of people in the stadium never rises more than half the
    amount.
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