Figure 4-20

-The presence of scalpers (people selling tickets at a price above the quoted price, P*) at a recent Super Bowl game suggests that the market for stadium seats could be represented by which graph in Figure 4-20?
A)1
B)2
C)3

Question

Figure 4-20
 
-The presence of scalpers (people selling tickets at a price above the quoted price, P*) at a recent Super Bowl game suggests that the market for stadium seats could be represented by which graph in Figure 4-20?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

The correct answer is A because the presence of scalpers suggests that the market price is above the equilibrium price, which is represented by graph 1.

Figure 4-20 -The Presence of Scalpers (People Selling Tickets at a Price