Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers (individuals who re-sell tickets at the event) were selling tickets in the same seating area as yours for $25. What is probably true?
A)There is excess demand for this concert at the Ticketmaster price.
B)The ticket you bought was under-priced for the market.
C)There is an excess supply of tickets for this concert at the Ticketmaster price.
D)The Ticketmaster price is an equilibrium price.

Question

Quizplus · Accepted Answer

The fact that scalpers are selling tickets for less than the Ticketmaster price suggests that there is an excess supply of tickets at the Ticketmaster price. This could be due to a variety of reasons, such as the event organizers overestimating demand, or people deciding not to attend at the last minute.

Suppose You Bought a Concert Ticket from Ticketmaster for $50