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:

Absolute Advantage

A scenario in which a country can produce a particular good or service more effectively than another country with the same amount of resources.

Comparative Advantage

an economic principle that posits a country or entity can produce a particular good or service at a lower opportunity cost than its trading partners, leading to beneficial trade.

Medium Of Exchange

Anything that facilitates trade by being generally accepted by all parties in payment for goods or services.

Facilitates Trade

Actions or policies designed to make trade between countries or parties easier, typically through reducing barriers such as tariffs and quotas.