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Question
A popular entertainer gives a concert in a 50,000 seat stadium. To give her fans a break, she charges only $50 a seat instead of the customary $75 a seat. At $75 a ticket, there would have been 50,000 tickets sold, and at $50, there are 80,000 people who want tickets. As a consequence of the generosity of the entertainer,
A) her fans are made better off.
B) a more fair system of pricing the tickets has been found.
C) another type of system will have to be found to allocate the tickets, making some of her fans better off and others worse off.
D) her fans are made worse off since there is an excess demand of 30,000 tickets.
Answer
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