Our Market Economy A market economy thrives on the entrepreneurial spirit and the laws of supply and demand. Nowhere is this more evident than with ticket scalpers.

They buy large quantities of tickets at box office prices and resell them at higher prices. The most profits are to be made when demand is the highest. For example, when the Atlanta Braves began postseason ticket sales in 1999, a line formed outside the stadium the night before. Ticket scalpers have been known to hire street people to stand in line all night to buy the maximum number of tickets so the scalpers have an ample supply for resale.

a. Is ticket scalping merely another form of the law of supply and demand? Is there anything unethical about scalping?

b. Who benefits from scalping?

Should scalping be prohibited or otherwise regulated?

d. What controls could a business put in place to deter scalping?

e. Suppose each ticket costs $30 at the box office and each purchaser in line can buy 12 tickets until all are sold. How will the scalper arrange to pay for the tickets so the individuals hired to stand in line do not leave with the money or the tickets?

So