If a scalper for the Super Bowl is able to charge $5,000 for a front-row seat, this suggests that
A) at the regular price, there is a surplus of Super Bowl tickets.
B) at the regular price, there is a shortage of Super Bowl tickets.
C) at the regular price, the quantity of Super Bowl tickets demanded equals the quantity supplied.
D) the scalper is making the football fan worse off.

Question

Quizplus · Accepted Answer

If a scalper is able to charge such a high price for a front-row Super Bowl seat, it suggests that the regular price for the tickets is actually lower than the market equilibrium price where supply and demand meet. In other words, there is a shortage of Super Bowl tickets at the regular price, leading to high demand and scalpers being able to charge exorbitant prices. Therefore, the best answer is B. As for choice D, it is also true that the scalper's actions may make the football fan worse off as they are paying a much higher price than they would have at the regular price, but it is not directly related to the question asked.

If a Scalper for the Super Bowl Is Able to Charge