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Superstar Rock Singers May Set Concert Ticket Prices Below the Equilibrium

Question 242

Multiple Choice

Superstar rock singers may set concert ticket prices below the equilibrium level because:


A) it is too costly to estimate the equilibrium price.
B) equilibrium ticket prices would be illegal.
C) it lowers their gross income which has consequent tax advantages.
D) the behaviour of fans in attempting to get tickets generates publicity and sold-out concerts promote record sales.

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