After Tickets for a Major Sporting Event Are Purchased at the Official

question 68

Multiple Choice

After tickets for a major sporting event are purchased at the official box office price,a market often develops whereby these tickets sell at prices well above the official box office price.Which of the following scenarios would NOT be able to explain this result?

• A) The official price was below equilibrium from the moment the tickets were available.
• B) Increased publicity causes the demand curve for the event to shift rightward.
• C) The event was not a sellout.
• D) Not everyone who wanted a ticket was able to buy one at the box office.

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Definitions:

Treasury Stock

Company-released shares that have been bought back, consequently lowering the overall available shares for trading.

Par Common Stock

The face value of a share of common stock as specified in the corporate charter, with no bearing on the market value.

Fair Market Price

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Preferred Stock

Preferred Stock represents a class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often including fixed dividends.