The Price Of Beef And Chicken

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1. a. The article suggest that beef and chicken are substitutes; as the price of beef increases the price of chicken will decreases, as its quantity demanded rises due to the rise in the price of beef. Supply and demand both decrease, causing price of beef to rise and quantity traded to fall, therefore the equilibrium quantity traded decreases, and price rises. The demand of beef has decreased, causing an increase of demand for chicken, a substitute which saw a decrease in price due to an increase in price of beef. Therefore the equilibrium price and quantity traded both increase in the chicken market. 2. a. Ticket scalping is buying tickets for an event at the retail price, and then reselling them at an inflated price, which is above the official ticket price. Ticket scalpers can sell tickets at well above the official ticket price, because they buy tickets for events that will sell out and people are desperate to attend the events, so they are willing to pay more than the official price, because the event is sold out and the only way they are able to attend is if they buy these high priced tickets. The demand for the tickets is often relatively inelastic, because there are no substitutes for tickets, meaning there is no cheaper option, and supply is limited so consumers have to pay high prices for tickets. The demand for tickets increases greatly, but the supply remains unchanged. This increases the equilibrium price and the quantity traded

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