Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

At large sporting occasions, unofficial markets arise in which tickets first sold by the event organiser are resold for prices above the original ticket price. What conclusion might an economist draw when looking at these markets?

  • AAllocation of tickets by ballot would be preferable.
  • BThe market for the resold tickets is more equitable.
  • CThe new allocation of tickets better reflects consumers’ utility.
  • DThis is a case of monopoly exploitation.

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