If a Scalper for the Super Bowl Is Able to Charge

question 291

Multiple Choice

If a scalper for the Super Bowl is able to charge $5,000 for a front-row seat, this suggests that

• A) at the regular price, there is a surplus of Super Bowl tickets.
• B) at the regular price, there is a shortage of Super Bowl tickets.
• C) at the regular price, the quantity of Super Bowl tickets demanded equals the quantity supplied.
• D) the scalper is making the football fan worse off.

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Definitions:

Year-end Value

The financial value of an asset or account as recorded at the end of the fiscal year, which is important for annual financial reporting.

Internal Controls

Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Sarbanes-Oxley Act

A U.S. federal law that aims to protect investors by making corporate disclosures more reliable and accurate.

Compensating Balance

A minimum bank account balance that a borrower is required to maintain as a condition for some forms of loans or line of credit.