The Number of Seats Available in a Stadium Is Fixed

question 38

Multiple Choice

The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?

• A) Football games must be more expensive to produce than baseball games.
• B) The demand for baseball games must be more elastic than the demand for football games.
• C) The supply of baseball games must be less elastic than the supply of football games.
• D) The demand for each baseball game must be lower than the demand for each football game.

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Definitions:

David Ricardo

An influential British economist known for developing the comparative advantage theory, which explains how nations can gain from trade by specializing in producing goods for which they have a lower opportunity cost relative to other countries.

Tenant Farmers

Individuals who rent land to farm from a landlord.

Economic Rent

Extra income earned by a factor of production (like land or labor) due to its relatively fixed supply, exceeding what is economically necessary to bring it into use.

Landowners

Individuals or entities that hold legal title or ownership of land.