Question: An article in the New York Times notes that classic rock star Tom Petty likes to perform in smaller venues that don't have as many

An article in the New York Times notes that classic rock star Tom Petty likes to perform in smaller venues that don't have as many seats as large venues such as Madison Square Garden in New York. According to the article, Petty insists that tickets to his concert be sold "below market price." The author of the article wondered why "Petty and his promoter would price tickets so low when there were clearly people willing to pay much, much more."
a. How does the author know that the prices for Petty's concert tickets are below the market price?
b. Why might Petty and his manager want tickets to have prices below the market price?

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a In smaller venues with fewer seats it is very likely that the quantity demanded of tickets will be ... View full answer

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