We find that if Red Sox is playing well, the price that scalpers may be getting for game tickets go...

Question

We find that if Red Sox is playing well, the price that scalpers may be getting for game tickets go up. How can we explain that using shift of the demand curve? If the government forces the scalpers to charge the actual price at which the tickets were earlier sold by Red Sox how will the outcome change?

Robert · Accepted Answer

A demand curve shows a relationship between the number of tickets demanded and the price of 
the ticket. The demand is a negative function of price implying that as the price increases the 
demand falls and vice versa. This is shown by the demand curve D1 below. S is the supply curve 
which shows that supply is positively related to the price.

We find that if Red Sox is playing well, the price that scalpers may be getting for game tickets go up. How can we explain that using shift of the demand curve? If the government forces the scalpers...

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