Question 1

A promoter might charge less than the profit maximizing ticket price because

Accepted Answer

All of the options are valid reasons why a promoter might charge less than the profit maximizing ticket price. A promoter may prioritize enhancing the total profit by also making on-site memorabilia sales. Additionally, the talent being represented may want to play to a full arena for personal reasons. Lastly, charging a fair price can create a positive reputation and increase future fan attendance.

Question 2

Figure 34.5
-In Figure 34.5, the effect of a well-enforced anti-scalping law is to

Accepted Answer

The answer of  Figure 34.5
-In Figure 34.5, the effect...

Question 3

If the Boston Red Sox were playing the Chicago Cubs in the World Series and fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

Accepted Answer

The emergence of a scalping market would indicate that the demand for tickets exceeds the supply at the face-value price. With fans willing to pay three times the face-value price, scalpers would be able to sell tickets at a higher price, allowing them to profit from the scarcity of tickets. This benefits both ticket holders who are willing to sell their tickets at a higher price and fans who are willing to pay more to watch the game. Therefore, the presence of a scalping market would make all ticket holders and potential buyers better off (or at least no worse off).

Question 4

A promoter might charge less than the profit maximizing ticket price because

Accepted Answer

The talent may want to create a reputation for charging a fair price to attract more attendees and ensure future demand, even if it means charging less than the profit-maximizing price initially.

Question 5

When ticket scalping is legal, economists insist that the market so created ensures that

Accepted Answer

When ticket scalping is legal, the market will determine the price of the tickets based on demand and supply. The people who are the most willing to pay a higher price to see the event will be able to do so. Therefore, the people who are willing to give up the most money will see the event.

Question 6

Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.), a profit maximizing promoter might

Accepted Answer

By increasing seating, the promoter can sell more tickets and increase revenue without having to lower ticket prices or eliminate the event altogether. This is a way to maximize profits while still meeting the demand for tickets.

Question 7

Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.), a profit maximizing promoter would

Accepted Answer

If there are long waiting lists for tickets, it means that demand for the event is high. To maximize profits, a promoter would raise ticket prices since consumers are willing to pay more to attend. This helps to ensure that only those who are willing to pay the higher price will purchase tickets, and the promoter can capture the maximum possible revenue.

Question 8

If scalping is defined as selling tickets for more than face value, outlawing scalping with perfect enforcement of the law will cause

Accepted Answer

A shortage occurs because the price is kept artificially low, leading to higher demand than supply.

Question 9

A promoter might charge less than the profit maximizing ticket price because

Accepted Answer

The talent that the promoter represents may prioritize playing to a full arena over maximizing ticket prices in order to satisfy their own ego and desire for a large audience.

Question 10

The price of Super Bowl tickets sold by scalpers is likely to be

Accepted Answer

Scalpers buy tickets at face value and then resell them for a profit. Therefore, the price of Super Bowl tickets sold by scalpers is likely to be more than face value, as they want to make a profit on their investment.

Question 11

If the New Orleans Saints were playing the Arizona Cardinals in the NFC final to determine who would play in the Super Bowl and their fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

Accepted Answer

When the demand for tickets exceeds the supply, a scalping market usually appears, with scalpers buying tickets at face value and reselling them at higher prices. This allows those who are willing to pay more to obtain tickets and those who are not willing to pay the higher price to save their money. Therefore, the scalping market can make all ticket holders and potential buyers better off or at least no worse off.

Question 12

The basic reason that your college's women's basketball tickets are rarely if ever scalped is because

Accepted Answer

Scalping relies on a high demand for limited ticket availability. If the games rarely sell out, there is no scarcity to drive up ticket prices and therefore no incentive for scalpers to buy and resell tickets.

Question 13

Figure 34.5
-Since the face value of a ticket is set well before the event, any increase in the demand for a ticket will

Accepted Answer

An increase in demand for tickets will lead to scalpers charging higher prices for tickets since there will be more people willing to pay a higher price for a limited number of tickets. The face value of the ticket does not change, so scalpers can charge a premium for their services.

Question 14

Suppose one of baseball's most controversial records - the Bonds' career home run record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Accepted Answer

The scalping market that would appear would allow ticket holders to sell their tickets at a higher price, while also allowing potential buyers to obtain a ticket that they may not have been able to get otherwise. This creates a mutually beneficial situation for both parties, making them at least no worse off and potentially better off.

Question 15

Suppose one of baseball's most ensuring records - the Pete Rose career hit total record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Accepted Answer

The scalping market would allow for those who value seeing the breaking of the record more to pay a higher price for tickets, while those who do not value it as much can choose not to buy at the higher price. Therefore, the scalping market would increase efficiency by allowing for the tickets to be allocated to those who value them the most. Thus, making all ticket holders and potential buys better off (or at least no worse off).

Question 16

Suppose one of baseball's most enduring records - the Dimaggio 56 game hit streak - were on the line. Tickets to the 57^th game might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Accepted Answer

The scalping market would make both ticket holders and potential buyers better off, as it would allow tickets to be distributed to those who value them the most (willing to pay the highest price). This creates a more efficient allocation of resources and benefits both parties involved. However, it is important to note that scalping can also lead to exploitation and unfair pricing practices, so it is a controversial issue.

Question 17

Suppose one of baseball's most controversial records - the Bonds' 72 home run season - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Accepted Answer

A scalping market would allow for those willing to pay a higher price to secure tickets, while those willing to sell their tickets at a higher price could do so. This would create a more efficient allocation of tickets and make both ticket holders and potential buyers better off, as some people are willing to pay more to attend a highly anticipated game. As supply and demand come into equilibrium, the price may stabilize at a higher level than face value, but it would still be a mutually beneficial transaction for both parties involved.

Question 18

Once tickets have been sold by the promoter, the model that best explains the role of scalpers is the

Accepted Answer

The supply and demand model best explains the role of scalpers in ticket sales. Scalpers buy tickets in bulk in order to create an artificial shortage which can drive up the price due to increased demand. This is largely driven by the basic economic principle of supply and demand. When the demand for a product is high and the supply is low, the price tends to increase. Scalpers take advantage of this by buying up tickets in large quantities and then reselling them at a higher price to make a profit.

Question 19

If the long-suffering Pittsburgh Pirates and Kansas City Royals were to meet in the World Series and their fans, realizing that another trip to the World Series would not some again for 50 years, were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

Accepted Answer

A scalping market would allow the tickets to be sold at the market value, which is now three times the face value. This would benefit both the sellers and the buyers as the sellers can make a profit and the buyers can secure a ticket at a fair price. Therefore, both ticket holders and potential buyers are better off, or at least no worse off.

Question 20

Demand for a "once-in-a-lifetime event" is likely to be

Accepted Answer

Demand for a "once-in-a-lifetime event" is likely to be less elastic because consumers are more willing to pay higher prices due to its unique and non-recurring nature, making them less sensitive to price changes.

Quiz 34: Ticket Brokers and Ticket Scalping

A promoter might charge less than the profit maximizing ticket price because

Figure 34.5 -In Figure 34.5, the effect of a well-enforced anti-scalping law is to

If the Boston Red Sox were playing the Chicago Cubs in the World Series and fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

A promoter might charge less than the profit maximizing ticket price because

When ticket scalping is legal, economists insist that the market so created ensures that

Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.) , a profit maximizing promoter might

Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.) , a profit maximizing promoter would

If scalping is defined as selling tickets for more than face value, outlawing scalping with perfect enforcement of the law will cause

A promoter might charge less than the profit maximizing ticket price because

The price of Super Bowl tickets sold by scalpers is likely to be

If the New Orleans Saints were playing the Arizona Cardinals in the NFC final to determine who would play in the Super Bowl and their fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

The basic reason that your college's women's basketball tickets are rarely if ever scalped is because

Figure 34.5 -Since the face value of a ticket is set well before the event, any increase in the demand for a ticket will

Suppose one of baseball's most controversial records - the Bonds' career home run record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Suppose one of baseball's most ensuring records - the Pete Rose career hit total record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Suppose one of baseball's most enduring records - the Dimaggio 56 game hit streak - were on the line. Tickets to the 57^th game might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Suppose one of baseball's most controversial records - the Bonds' 72 home run season - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Once tickets have been sold by the promoter, the model that best explains the role of scalpers is the

Demand for a "once-in-a-lifetime event" is likely to be

Quiz 34: Ticket Brokers and Ticket Scalping

A promoter might charge less than the profit maximizing ticket price because

Figure 34.5 -In Figure 34.5, the effect of a well-enforced anti-scalping law is to

If the Boston Red Sox were playing the Chicago Cubs in the World Series and fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

A promoter might charge less than the profit maximizing ticket price because

When ticket scalping is legal, economists insist that the market so created ensures that

Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.) , a profit maximizing promoter might

Since there are long waiting lists for tickets to events that regularly occur (Duke basketball, the August NASCAR race in Bristol, Tennessee, etc.) , a profit maximizing promoter would

If scalping is defined as selling tickets for more than face value, outlawing scalping with perfect enforcement of the law will cause

A promoter might charge less than the profit maximizing ticket price because

The price of Super Bowl tickets sold by scalpers is likely to be

If the New Orleans Saints were playing the Arizona Cardinals in the NFC final to determine who would play in the Super Bowl and their fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear and it

The basic reason that your college's women's basketball tickets are rarely if ever scalped is because

Figure 34.5 -Since the face value of a ticket is set well before the event, any increase in the demand for a ticket will

Suppose one of baseball's most controversial records - the Bonds' career home run record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Suppose one of baseball's most ensuring records - the Pete Rose career hit total record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Suppose one of baseball's most enduring records - the Dimaggio 56 game hit streak - were on the line. Tickets to the 57th game might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Suppose one of baseball's most controversial records - the Bonds' 72 home run season - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it

Once tickets have been sold by the promoter, the model that best explains the role of scalpers is the

Demand for a "once-in-a-lifetime event" is likely to be

Suppose one of baseball's most enduring records - the Dimaggio 56 game hit streak - were on the line. Tickets to the 57^th game might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it