Sunday, May 29, 2011

Use the theory of supply and demand to explain ticket scalping. Who are the winners and losers in ticket scalping and why?This is for an economics...

In a situation where ticket scalping is occurring, there
are fewer tickets available for purchase than there are potential buyers - the supply
does not meet the demand. Because of this, those individuals who have the few tickets
that are available for sale can increase the asking price of those tickets. The
assumption is that someone will want the tickets badly enough (high enough degree of
demand) to agree to pay whatever inflated price is being
requested.


Assuming this scenario, the persons selling the
tickets are the surest winners - they are going to receive more than face value for the
tickets they have to sell. Persons buying the tickets win in the sense of being able to
attend the event for which the tickets are being sold but are losers in terms of the
amount of money spent for the tickets.

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