Concert promoters often set ticket prices below what they expect the market-clearing price to be.They are effectively imposing a ________ and the result is often ________ at a considerably higher price.

Question

Quizplus · Accepted Answer

Setting a price ceiling below the market-clearing price leads to a shortage of tickets, which in turn creates an opportunity for ticket scalping, where prices are sold at considerably higher prices.

Concert Promoters Often Set Ticket Prices Below What They Expect