The price of tickets for a Rolling Stones concert is $50. At that price, tickets

Question

The price of tickets for a Rolling Stones concert is $50. At that price, tickets sell out almost immediately. After tickets sell out, there are over 20,000 people who still want to buy tickets to the concert at the $50 price. It follows that:

(a) the market equilibrium price of tickets to the concert is less than $50.
(b) the market equilibrium price of tickets to the concert is $50.
(c) the market equilibrium price of tickets to the concert exceeds $50.
(d) at the $50 price, there is a surplus of tickets on the market.
(e) Both (c) and (d).

Explanation / Answer

In this case, the answer is only (c) the market equilibrium price of tickets to the concert exceeds $50. There is not a surplus of tickets there is a shortage because they do not have enough tickets for the 20,000 who still want tickets. Hope this helps

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