Consumer and Producer Surplus - End of Chapter Problem On Tuesday, November 15, 2022, tickets for Taylor Swift's highly anticipated U.S. concert tour went on sale at Ticketmaster. In expectation of record-breaking demand, Ticketmaster started a fan verification process and lottery access to purchase presale tickets. More than 3.5 million fans were approved in the lottery. Millions were left out. Even with the presale restrictions, the more than 3.5 million verified fans were frantically searching Ticketmaster. In the end, there were only 2 million tickets sold, leaving millions of fans without tickets. In an attempt to prevent ticket scalping, Swift and Ticketmaster limited buyers to six tickets per concert and required fan verification. Despite these attempts to restrict resale, tickets on secondary sites like StubHub were selling for 10 times their face value. a. In the accompanying diagram, place point PE to depict the equilibrium price of tickets if the price were allowed to fluctuate based on supply and demand. b. Shade the areas which depict consumer surplus (CS) and producer surplus (PS) in the market. 1,000 900 750 600 450 300 150 0 Supply Quantity of Tickets P Demand CS PS Price of Ticket

Consumer and Producer Surplus - End of Chapter Problem On Tuesday, November 15, 2022, tickets for Taylor Swift's highly anticipated U.S. concert tour went on sale at Ticketmaster. In expectation of record-breaking demand, Ticketmaster started a fan verification process and lottery access to purchase presale tickets. More than 3.5 million fans were approved in the lottery. Millions were left out. Even with the presale restrictions, the more than 3.5 million verified fans were frantically searching Ticketmaster. In the end, there were only 2 million tickets sold, leaving millions of fans without tickets. In an attempt to prevent ticket scalping, Swift and Ticketmaster limited buyers to six tickets per concert and required fan verification. Despite these attempts to restrict resale, tickets on secondary sites like StubHub were selling for 10 times their face value. a. In the accompanying diagram, place point PE to depict the equilibrium price of tickets if the price were allowed to fluctuate based on supply and demand. b. Shade the areas which depict consumer surplus (CS) and producer surplus (PS) in the market. 1,000 900 750 600 450 300 150 0 Supply Quantity of Tickets P Demand CS PS Price of Ticket

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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