In Rolling Stone magazine, several fans and rock stars, including Pearl Jam, were bemoaning the high price of concert tickets. One superstar argued, “It just isn’t worth $75 to see me play. No one should have to pay that much to go to a concert.” Assume this star sold out arenas around the country at an average ticket price of $75
- How would you evaluate the arguments that ticket prices are too high?
- Suppose that due to this star’s protests, ticket prices were lowered to $50. In what sense is this price toolow? Draw a diagram using supply and demand curves to support your argument.
- Suppose Pearl Jam really wanted to bring down ticket prices. Since the band controls the supply of its services,what do you recommend they do? Explain using a supply and demand diagram.
