When the price per ticket is P*, there are empty seats at a university’s basketball arena. From this, we can conclude that

A. P* is greater than the equilibrium price.
B. P* is less than the equilibrium price.
C. P* is the equilibrium price.
D. it’s not possible to determine anything about the equilibrium price with this information.

Answer: B

Economics

You might also like to view...

Which policy measure requires investment banks to sever the links between research and securities underwriting?

A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994

Economics

Which of the following is a determinant of investment?

a. Technological change b. Net exports c. Demographics d. Nominal GDP e. Population

Economics