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Chapter 3: Problem 27

On most days, more people want to see the taping of The Tonight Show Starring Jimmy Fallon (in New York City) than there are seats in the taping studio. What might explain this shortage?

Short Answer

Expert verified
The shortage of seats for the taping of The Tonight Show Starring Jimmy Fallon is caused by a high demand for seats from spectators and a limited seating capacity in the studio. The supply - the seats available - cannot accommodate all the people who want to attend the show, causing a shortage.

Step by step solution

01

Identify The Demand

Firstly, identify that there is a high demand to see the taping of The Tonight Show. This demand comes from the large number of people who want to watch the show live in the studio but are unable to do so because of the limited number of seats available.
02

Assess The Supply

Next, recognize that the studio has a limited supply of seats. The 'supply' in this scenario is the seating capacity of the studio where The Tonight Show is taped.
03

Understand The Shortage

The shortage is due to the imbalance between the high demand to see the show and the limited supply of seats. High demand plus limited supply (which, in this case, is unable to increase) results in a shortage. This is a basic rule of supply and demand economics.

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