The price of a ticket to the Beyoncé concert is set at $55. All the tickets for the concert sell out one hour after they go on sale and there are still 1,000 fans who want to buy tickets. It follows that the:
A) equilibrium price of tickets to the concert is $55.
B) equilibrium price of tickets to the concert is more than $55.
C) equilibrium price of tickets to the concert is less than $55.
D) quantity of tickets demanded is equal to the quantity supplied at the $55 price.

Question

Quizplus · Accepted Answer

The equilibrium price is where the quantity demanded equals the quantity supplied. Since tickets sold out quickly and there are still fans wanting to buy, the demand exceeds supply at $55, indicating the equilibrium price is higher.

The Price of a Ticket to the Beyoncé Concert Is