If Lady Gaga insists that tickets to her concert be sold for $100 each rather than the $500 each that could be charged as reflected by demand for those tickets, then the result will be

Question

Quizplus · Accepted Answer

Setting the ticket price lower than the market-clearing price (what people are willing to pay) will likely result in secondary markets (like scalpers) capturing part of the economic rent by reselling tickets at a higher price. This does not decrease demand or create excess supply; instead, it redistributes the economic rent.

If Lady Gaga Insists That Tickets to Her Concert Be