Ticketmaster though has the solid relationship built with the client and works differently as they only work to sell tickets at the pre-determined price set by the client they work for. Stubhub is different in that they are a niche ticket market for consumers seeking tickets to events only. Ebay in fact purchased Stubhub as to acquire market share in this sector. Stubhub also provides consumers the option to buy directly from each other but this is the only specialty service they provide. They are the industry leader in the type of ticket sales. Stubhub has been very innovative in providing some specialized services such as VIP packages. They also split the commission cost with the buyer and seller. So although the price of the ticket is the same, the seller retains more of the revenue from the sale of the ticket. This obviously entices sellers to use Stubhub. They also have partnered with Fedex to be able to guarantee delivery of the tickets to the buyer. This eliminates some of the potential problems of buying and selling tickets through such a service as Stubhub. Tickets are guaranteed for both the buyer and seller from Stubhub.
-The role and significance of prices in the market economy has to do with supply and demand. If there are the same amount of buyers as products, the price will settle. If there are more buyers than products, the price of the product will rise. And, if there are more products than buyers, the price of the product will decrease. This occurs until the supply of the product matches the demand of the product.
In the article, “Another Year of the Chicken: U.S. Beef Supply Will Fall Again in 2015” (2014) the author, Vanessa Wong, analyzes how the the price of beef and been increasing resulting in more of a demand in chicken. Wong goes on to state that the increase in beef resulted from an extreme drought in 2012 “caused feed prices to spike and, in response, farmers thinned their herds” (Wong, 2012). More of a demand in chicken has also been noticed in restaurants. The price of chicken increased five percent as opposed to the nine percent increase in beef at Chipotle Mexican Grill restaurants. However, by the year 2016 Tyson Foods has projected that the cattle supplies will be down to has little as one percent. In truth, the price of beef will decrease.
According to the law of demand, if a.product price increases, quantity demanded will decrease.b.consumer income increases, quantity demanded will increase.c.product price increases, quantity demanded will increase.d.consumer income increases, quantity demanded will decrease.e.supply increases, demand will increase. ANS
Events that are in high demand would be subject to higher fees than those with lower demand. This would be beneficial to StubHub cause the lower fees could help stimulate the user into purchasing the event tickets purely because psychologically they feel as if they 're receiving a good bargain. In addition, StubHub could look to its parent company, eBay, for a unique pricing model to attract customer. If StubHub were to introduce an auction style selling system, they could help boost the sales of tickets by having users bid for thickets causing the price to increase accordingly. This unique action style selling of tickets would give them a large competitive advantage over any other online ticketing site, that doesn 't have a feature similar to this. The implementation of these new pricing models would be an ERP improvement step. By controlling and presenting the service fees and prices of tickets, they are able to control their supply cain of ticket and have lower demanded tickets selling even if its for a lower fee. Overall, StubHub would see higher ticket sales and customer satisfaction because users would be inclined to purchase more if they 're paying less and feel happier when evaluating the purchase post-sale.
The purpose of the paper is to explain why there is a decrease in price as demand increases for turkeys. Typically, the price should increase, as the demand is increased, but between October and November, the retail prices are seen to drop an average of 9 percent, where the prices should be increasing due to Thanksgiving (Rampell). Rampell states that the suppliers are perceiving turkeys as “loss leaders” which are products that purposefully have a low price in order to attract customers (Rampell).
Apple juice and orange juice are substitutes for consumers, so the fall in the price of apple juice decreases the demand for orange juice. The demand curve for orange juice shifts leftward. The increase in the wage rate paid to orange grove workers raises the cost of producing orange juice. The supply of orange juice decreases and the supply curve of orange juice shifts leftward. The net effect of these events decreases the equilibrium quantity but has an undetermined effect on equilibrium price. If supply decreases by more than the demand, the shift in the
What happens to the equilibrium price and quantity after these changes are put into effect? Do they go up, down or stay the same?P:_____down_____________Q:_____down__________________
Use University of Phoenix Material: Appendix A to create graphs illustrating the equilibrating process in price relation to the shift in supply and demand.
a. an increase in the demand for red meat products and a decrease in the demand for fish & poultry b. an increase in the demand for dairy products and a decrease in the demand for red meat c. an increase in the demand for fruits, vegetables and fish and a decrease in demand from fried foods, dairy
Evaluate each of the following changes in supply and/or demand. How will each affect equilibrium price and quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on shifts, will the answers be indeterminate?
Using appropriate diagrams, discuss how an increase or an improvement in the following non-price determinants of supply would change equilibrium prices and quantities.