Question

Which of the following statements about ticket scalping is correct?

A. On economic grounds, ticket scalping does more harm than good among those who engage in it
B. Ticket scalping occurs when the event organizers set the formal price of the tickets higher than the equilibrium price
C. The existence of a scalpers' market could mean that the event sponsors/organizers are getting lower sales revenues that what they could have gotten at equilibrium
D. Ticket scalping obviously benefits the sellers/scalpers, but is often harmful to the ones buying the tickets

Answer 1

The correct statement about ticket scalping is that it can lead to lower sales revenues for event organizers if they set ticket prices below the market equilibrium, allowing scalpers to profit from the price difference.

Step-by-step explanation:

Among the listed statements about ticket scalping, the correct one is C. The existence of a scalpers' market could mean that the event sponsors/organizers are getting lower sales revenues than what they could have gotten at equilibrium.

Bands with inelastic demand for their shows might be able to increase ticket prices significantly without a drop in sales volume, leading to higher revenues. However, they sometimes choose to price tickets lower than the maximum possible to foster goodwill among fans and boost sales of merchandise and other related products.