If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat, this suggests that
A) at the regular price, there is a surplus of Super Bowl tickets.
B) at the regular price, there is a shortage of Super Bowl tickets.
C) at the regular price, the quantity of Super Bowl tickets demanded equals the quantity supplied.
D) the scalper is making the football fan worse off.
B
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If the exchange rate between the U.S. dollar and the Mexican peso (pesos per dollar) is less than the relative purchasing power between the two countries, which of the following would be true?
A) Purchasing power parity predicts that the dollar is overvalued as traders take advantage of arbitrage opportunities. B) Purchasing power parity predicts that the value of the dollar will fall as traders take advantage of arbitrage opportunities. C) There are opportunities for profit by purchasing goods in the United States and then selling them in Mexico. D) There are no arbitrage opportunities for which traders can take advantage.
The long-run aggregate supply curve shows the relationship between the ________ and ________
A) price level; quantity of real GDP supplied B) real interest rate; quantity of real GDP supplied C) inflation rate; quantity of real GDP demanded D) nominal interest rate; quantity of real GDP supplied