The Number of Seats Available in an Arena Is Fixed

question 73

Multiple Choice

The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true?

• A) Basketball games must be more expensive to produce than a circus performance.
• B) The demand for each basketball game must be more than the demand for each circus performance.
• C) The supply of circus performances must be less elastic than the supply of basketball games.
• D) The demand for each circus performance must be greater than the demand for each basketball game.

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Definitions:

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.

Correlation

A statistical measure that describes the extent to which two variables change together, and how strong the relationship is between them.

NHL Team

A professional ice hockey team that competes in the National Hockey League, a major league in North America.

Average Attendance

The mean number of individuals present at a series of events or within a given period.