In the 2016 Olympics in Brazil, the opening ceremony will take place in the Maracana Stadium, which can seat 82 000 spectators. It is expected that all tickets for the ceremony will be sold quickly, leaving many people dissatisfied.
What can be concluded from this?
1 )
Price elasticity of demand for tickets will be perfectly elastic.
Some people will be able to resell their tickets at a higher price than they paid for them.
3 )
The Olympic authority will make more tickets available for sale.
4 )
This will be an example of market failure.
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