About 10,000 tickets for a Men's Final Four college basketball games at the St. Louis Edward Jones Dome are 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 already offer to sell tickets for between $200 and $2,000 depending on seat location, even though the practice is illegal.

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 of legalizing scalping on the resale value of Final Four tickets?