Concert Promoters Often Set Ticket Prices Below What They Expect

question 68

Multiple Choice

Concert promoters often set ticket prices below what they expect the market-clearing price to be.They are effectively imposing a ________ and the result is often ________ at a considerably higher price.

• A)price ceiling; ticket scalping
• B)price floor; ticket scalping
• C)price ceiling; a surplus
• D)price floor; a shortage
• E)fair price; excess tickets

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Definitions:

Trade Accounts Payable

Liabilities owed by a business to its suppliers or creditors for inventory or services received that are yet to be paid for.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received.

Potential Lawsuit

A legal challenge or claim that has not yet been filed but has the possibility to be brought forward because of existing disputes.

Contingent Liabilities

Possible obligations that may arise in the future due to past events, depending on the occurrence of certain uncertain events.