The Graph Below Shows the Supply and Demand for Tickets

question 115

Multiple Choice

The graph below shows the supply and demand for tickets to a Raptors basketball game.

-Refer to the graph above to answer this question.Which of the following statements is correct?

• A)If demand is D₃,then all the tickets could not be sold.
• B)If demand in D₂,then there would be a shortage of tickets.
• C)If the price of a ticket is $40 and demand is D₂,then ticket scalping would result.
• D)If the price of a ticket is $40 and demand is D₃,then ticket scalping would result.
• E)The supply curve is perfectly elastic and the demand curves are inelastic.

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Definitions:

Eurobanks

Banks that make loans and accept deposits in foreign currencies.

Foreign Currencies

Money or other forms of payment used in other countries, distinct from the domestic currency of the home country.

Arbitrage

The practice of taking advantage of price differences in different markets for the same asset, thus earning a profit without any risk.

Triangle Arbitrage

Triangle arbitrage is a risk-free trading strategy that takes advantage of price differences among three currencies in the foreign exchange market.