Figure 34.5 -Since the Face Value of a Ticket Is Set Well

question 44

Multiple Choice

Figure 34.5
-Since the face value of a ticket is set well before the event, any increase in the demand for a ticket will

• A)increase the number of tickets generally available.
• B)certainly increase the number of tickets that people will want to sell to scalpers.
• C)certainly decrease the number of tickets that people will want to sell to scalpers.
• D)increase the scalper's price of tickets.

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Definitions:

Marginal Abatement Cost

Represents the cost associated with eliminating an additional unit of a negative output, such as pollution.

Emissions Permit

A legal right granted by a government to emit a certain amount of pollutants into the atmosphere; often used in cap and trade programs.

Refundable Deposit

An amount of money given as security for an item that is intended to be returned, with the promise of repayment.

Marginal Private Cost

The change in a firm's total costs that comes from making one additional unit, considering only private costs without externalities.