Econ help The price of a ticket to the ballet is set at 50 A

Econ help:

The price of a ticket to the ballet is set at $50. All tickets for the ballet sell out one hour after they go on sale and there are still 5000 people who want to buy tickets. It follows that:

A. the true equilibrium price of tickets to the ballet is less than $50.

B. the true equilibrium price of tickets to the ballet is $50.

C. the true equilibrium price of tickets to the ballet is more than $50.

D. the quantity of tickets demanded is equal to the quantity supplied at the $50 price.

Which of the following statements is true?

A. The quantity supplied is directly related to prices, whereas supply is inversely related to price.

B. The quantity supplied is inversely related to prices, whereas supply is directly related to price.

C. Supply is represented graphically by a curve and quantity supplied as a point on that curve.

D. The quantity supplied is represented graphically by a curve and supply as a point on that curve.

Solution

(1) Since there is excess demand left when tickets are sold at $50, it means that equilibrium price was higher than $50.

Correct option (C)

(2) Supply is represented as a supply curve, while quantity supplied at a specific price is given as the quantity at the particular point corresponding to that price.

Correct option (C)