Chapter 7.4, Problem 3R

To determine

To evaluate: The way shortage of tickets to a professional sports event will decide the price of those tickets.

Explanation of Solution

The market for tickets works like every other common markets. When there is a game that people really want to watch, ticket prices would start increasing as ticket sellers knows that the demand for the ticket will be higher.

So, when there will be a shortage of tickets, it means that the supply of tickets will be low due to which the ticket sellers will raise the price of tickets in order to earn more. Hence, the shortage of tickets will automatically leads to a climb in the tickets price.

Economics Concept Introduction

Introduction: A situation or state in which all forces are balanced is known as equilibrium. Or it can be said that, in the absence of outside any change, economic variables will remain the same.