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Concerts and Economic Principles Flashcards | StudBud
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Concerts and Economic Principles
Concerts and Economic Principles
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1
What is a negative externality of large concerts?
Fans get to enjoy live music
Artists earn more money
Local businesses make money
Increased pollution and traffic congestion
2
Some states have anti-scalping laws to limit ticket reselling. What is the economic reason behind this?
To reduce concert attendance
To keep ticket prices affordable
To increase profits for resellers
To force artists to lower prices
3
You’re deciding whether to buy concert tickets. Which is NOT part of a cost-benefit analysis?
How much enjoyment you’ll get from the concert
Whether you like the artist
How much the ticket costs
The ticket seller’s profit
4
Why do concerts have VIP tickets, general admission, and nosebleed seats?
So all fans pay the same price
To limit access to concerts
Because the venue is too small
To charge different prices based on willingness to pay
5
Ticketmaster uses dynamic pricing, which means ticket prices…
Are set by the government
Change based on demand
Are randomly assigned
Never change
6
Why do ticket prices for big artists like Taylor Swift or Beyoncé skyrocket?
Demand is high while supply is limited
There are more tickets than fans
The cost of production increases
Fans refuse to buy resale tickets
7
Why can Ticketmaster charge high service fees on concert tickets?
They have little competition
Government regulations require fees
Resellers control the prices
Artists set the fees
8
A fan buys front-row tickets for $3,000, believing it’s a once-in-a-lifetime experience. What concept explains this?
Price discrimination
Marginal benefit exceeding marginal cost
Law of diminishing returns
Externalities
9
Ticket scalping (resellers buying and reselling tickets at extreme prices) is an example of:
Perfect competition
A free market in action
Market failure due to price gouging
A government-imposed price ceiling
10
If you spend $500 on concert tickets instead of saving for a new laptop, your opportunity cost is:
The price of the ticket
The Ticketmaster fees
The laptop you could have bought
The fun of the concert
