True or False: If there is a shortage of a product in the market, then the actual selling price of a product is below its equilibrium price. True False A popular band is coming to town with only one concert. The price of a ticket is $50, and the concert is sold out almost instantly. Still, a great number of people would pay extra to go to the concert.

Question

Walter Whitney

Business

20 December, 20:14

True or False: If there is a shortage of a product in the market, then the actual selling price of a product is below its equilibrium price. True False A popular band is coming to town with only one concert. The price of a ticket is $50, and the concert is sold out almost instantly. Still, a great number of people would pay extra to go to the concert.

+1

Answers (1)

Know the Answer?

Itchy · Answer 1

explained

Explanation:

If there is a shortage of a product in the market, then the actual selling price of a product is below its equilibrium price. It is true statement and because shortage leads to lesser demand and hence lower equilibrium price.

In the second case the price of the tickets become higher than $50 and people still pay to go to the concert and this is because the demand is more the supply is less.