Tickets for Music Concerts That Are Sold on the Internet

question 154

Multiple Choice

Tickets for music concerts that are sold on the Internet are often sold out within minutes and many unsatisfied customers are unable to get tickets (in the legitimate market) .One explanation for this is that

• A)concert goers are not rational.
• B)prices for purchasing digital music have increased.
• C)the market price for concert tickets may be set above its equilibrium price.
• D)the market price for concert tickets may be set below its equilibrium price.
• E)the market price for concert tickets is at its equilibrium level.

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Definitions:

Total Revenues

The entire amount of income generated by a company from its business activities, before any expenses are subtracted.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.

Variable Costs

Costs that change in proportion to the level of output or activity.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.