If the Boston Red Sox Were Playing the Chicago Cubs

question 14

Multiple Choice

If the Boston Red Sox were playing the Chicago Cubs in the World Series and fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

• A)would make all ticket holders and potential buys worse off.
• B)would make all ticket holders and potential buys better off (or at least no worse off).
• C)cause the price to fall below the face value.
• D)cause the price to fall back to the face value.

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Definitions:

Nature

The inherent or fundamental qualities or characteristics of something, often referring to the physical world and its phenomena.

Dissolved

The process of legally disbanding a corporation or partnership, effectively ending its existence.

Corporation

A legal entity that is separate from its owners, providing limited liability to its shareholders and capable of owning property, entering contracts, and being sued.

Preferred Shareholders

Holders of preferred shares who may have a right to vote arising if dividends are not paid.