A show by U2 in the New York City area was an instant sellout due to major purchasing of tickets by Ticketmaster. Just as quickly, however, thousands of ticket listings started appearing on TicketsNow.com a Ticketmaster subsidiary, where fans and brokers flip tickets, often at prices far above face value. For example, one $ 253 face-value ticket for a seat near the stage was listed for $ 10,000. The state of New York’s anti-scalping laws were suspended in 2007. Should they be reinstated to pre-vent such “consumer rip-offs,” as they have been termed by certain policymakers who also believe that there is no benefit to consumers from allowing tickets to most large events to be resold at any price?
Answer to relevant QuestionsImelda spends her entire income on shoes and hats. Draw the budget line for each of the following situations, identifying the intercepts and the slope in each case. a. Monthly income is $ 1,000, the price of a pair of shoes ...When we use the composite- good convention, what do we mean by a composite good and how do we measure it? What is the slope of the budget line? What is the slope of an indifference curve? Does the consumer equilibrium ...If Sam’s preferences relating her own income and Oscar’s income conform to the Golden Rule (“Love thy neighbor as thyself”), what would her indifference curves in a diagram like Figure look like?In the tax-plus-rebate example discussed in the text, suppose that the government adjusts the size of the rebate so that the consumer stays on her initial indifference curve (U2 in Figure 4.4). Show the results in a diagram. ...Repeat the preceding question but assume that a decrease in the price of cigars leads to a decrease in George’s scotch consumption. Does this imply that scotch is an inferior good in George’s case?
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