About 10,000 tickets for the 2005 Men's Final Four college basketball games at the St. Louis Edward Jones Dome were to be sold in a lottery system for between $110 and $130 apiece. Typically applications exceed available tickets by 100,000. A year before the game, scalpers were already offering to sell tickets for between $200 and $2,000 depending on seat location, even though the practice is illegal. (Difficult)
a. Demonstrate the supply and demand for Final Four tickets. How do you know that there is an excess demand for tickets at $130?
b. Demonstrate the scalped price of between $200 and $2,000.
c. What would be the effect