Suppose That Justin Timberlake Sells 10,000 Tickets to a Concerts

question 428

Multiple Choice

Suppose that Justin Timberlake sells 10,000 tickets to a concerts at $480 each. If the equilibrium price is $600 per ticket for a fixed supply of 10,000 tickets, what is the value of the additional economic rent that Timberlake could earn if he charged the market clearing price?

• A) $12.00
• B) $1.2 million
• C) $3 million
• D) $1.8 million

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Definitions:

Anchor

A device used to connect a vessel to the bed of a body of water to prevent the craft from drifting due to wind or current.

Leading-Trailing Brake Designs

A drum brake configuration where one brake shoe is positioned to lead and press against the drum due to rotational forces, and the other trails and provides lesser braking force.

Anchor

A device used to connect a vehicle to the ground to prevent it from moving, or a metaphor for something that provides stability.

Drum

A cylindrical member that rotates and is part of a machine, such as in a drum brake where it provides the surface against which brake shoes press.