Question

You just bought a ticket to the hottest new musical, and you paid $70 for your ticket. When you check online, you discover that tickets are being resold for $900 each. You tell your economics professor about this, and she responds with the following advice:

Required:
You should only keep your ticket if you value seeing the musical at:______$

Answer 1

$900

Step-by-step explanation:

Base on the scenario been described in the question, where the economics professor told you when you are to the keep the ticket, You should only keep your ticket if you value seeing the musical at $900 because price of the ticket is very expensive online compared to when you buy it at a store. The price margin compared to when you buy it online is very wide($900-$70=$830) as your gain if you chose to sell it, the economics professor will only allow you to keep it of the price online is greater than the price you purchase in store.

Answer 2

$900

Step-by-step explanation:

you should only keep your ticket if you value seeing the musical at $900 which is the current value of the ticket that you hold or you can resell the ticket online/

The initial value of the ticket bought is $70 and the current vale of the ticket due to high demand is currently at $900. if you should sell the ticket you will make a profit of = 900 - 70 = $830. this profit would be massive compared to the purchase price

your economics professor would only advice you to take this action if you value seeing the musical for ≤ $900 else you should keep the ticket