Scalpers (people selling tickets at a price above the stated price, P*) were spotted at this year's Super Bowl game.This suggest that
A)P* is less than the equilibrium price.
B)P* is greater than the equilibrium price.
C)P* is the equilibrium price.
D)it's not possible to determine anything about the equilibrium price with this information.

Question

Quizplus · Accepted Answer

Scalpers are able to sell tickets at a price above the stated price (P*) because the demand for tickets exceeds the supply at P*. This indicates that P* is set below the equilibrium price, where the quantity demanded would equal the quantity supplied.

Scalpers (People Selling Tickets at a Price Above the Stated