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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