You are watching: Scalping at major sporting events is an example of
In this business economics lesboy, students will use supply and demand also to learn about price ceilings in the ticket sector.
Display PowerPoint slide 1 (usage the notes location as needed). Ask students what can perhaps define this stselection case that periodically occurs exterior major sporting events? Write the words “ticket scalping” on the board and invite students to provide you via a definition. Ask students that they think anti-scalping laws are designed to defend.
Begin by asking the students why someone would pay even more than the face worth for a ticket. Sjust how slide 2 and also describe (making use of notes). Next off, ask students if the face worth of a ticket is the same as the market price for a ticket (aget usage slide 2 notes). Exordinary that some areas have created anti-scalping regulations. These laws carry out not allow fans to offer tickets to other civilization for more than the confront worth. This article provides an introduction of such legislations from around the country: SeatGeek. Introduce the term price ceiling. Sjust how slide 3 and also usage the notes.
Display slide 4. Ask students to occupational in tiny teams to answer the two prompts. Use the notes to assist through the first question and also expose the answer to the second question after conducting a class discussion.
See more: Just When The Caterpillar Thought The World Was Over Quote, Just When The Caterpillar
Have students visit a webwebsite favor StubHub. Ask them to uncover two sporting events from their regional location where the market price exceeds the confront value. Ask them to demonstrate this situation on a supply and also demand graph. They will also have to visit a webwebsite that mirrors what the face value of the ticket is in order to check out if the ticket prices on Stub Hub have gone beyond the challenge value.
Ask students to review this recent post about the prices of tickets in the time of the 2016 World Series: https://www.cbssporting activities.com/mlb/news/cubs-indians-world-series-game-7-tickets-standing-room-only-seats-hit-four-digits/. Have a conversation roughly the adhering to questions:Demonstprice on a supply and demand also graph why the prices for World Series tickets in Chicago were so high.Are these incredibly high prices a problem and also would certainly an anti-scalping law be efficient in addressing the problem?
AnswersStudents draw a supply and also demand also graph through the demand also curve shifted far to the ideal, driving prices up.An anti-scalping law might store some sellers from offering at such high prices. The regulation can also lead to a shortage of tickets easily accessible to those wanting to buy them on the secondary sector. It could also cause a babsence sector to build wbelow re-sellers run “under the table.”