Question

You have noticed that the price of tickets to your university’s basketball games keeps increasing but the supply of tickets remains the same. Supply might be unresponsive to changes in price because:A) there a fixed number of stadium seats.

B) the fans are not very loyal to the team.
C) it is to too difficult to change ticket prices.
D) the university administration is stubborn.

Answer 1

A) there a fixed number of stadium seats.

Step-by-step explanation:

Price of tickets increases because the number of seats is fixed. Therefore, if the authority sells one ticket, one seat has been reduced. If there are 500 seats available and 200 tickets are sold, 300 seats are available. In that case, the supply remains the same. However, due to the increasing demand, the authority tries to increase the price. Therefore, option A is correct.