The graph below shows the supply and demand for tickets to a Raptors basketball game. -Refer to the graph above to answer this question.Which of the following statements is correct? A)If demand is D₃,then all the tickets could not be sold. B)If demand in D₂,then there would be a shortage of tickets. C)If the price of a ticket is $40 and demand is D₂,then ticket scalping would result. D)If the price of a ticket is $40 and demand is D₃,then ticket scalping would result. E)The supply curve is perfectly elastic and the demand curves are inelastic.

Question

Quizplus · Accepted Answer

If the price of a ticket is $40 and demand is D2, then the quantity supplied is less than the quantity demanded, creating a shortage. In this situation, ticket scalpers can buy tickets at the lower price and resell them at a higher price, making a profit.

The Graph Below Shows the Supply and Demand for Tickets