In Rolling Stone magazine, several fans and rock stars, includingPearl Jam, were
Chapter 2, Problem 6(choose chapter or problem)
In Rolling Stone magazine, several fans and rock stars, includingPearl Jam, were bemoaning the high price of concert tickets.One superstar argued, It just isnt worth $75 to see me play.No one should have to pay that much to go to a concert. Assumethis star sold out arenas around the country at an averageticket price of $75.a. How would you evaluate the arguments that ticket pricesare too high?b. Suppose that due to this stars protests, ticket prices werelowered to $50. In what sense is this price too low? Draw adiagram using supply and demand curves to support yourargument.c. Suppose Pearl Jam really wanted to bring down ticketprices. Since the band controls the supply of its services,what do you recommend they do? Explain using a supplyand demand diagram.d. Suppose the bands next CD was a total dud. Do you thinkthey would still have to worry about ticket prices being toohigh? Why or why not? Draw a supply and demand diagramto support your argument.e. Suppose the group announced their next tour was going tobe their last. What effect would this likely have on the demandfor and price of tickets? Illustrate with a supply anddemand diagram.
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