1. Ticket prices for sporting and entertainment events are often regulated by municipalities. For example, the city of Los Angeles oversees pricing of events at baseball's Dodger Stadium. If scalping is legal, there will be a market price for scalped tickets, set in the usual way. However, if it is illegal, it is possible to impose a penalty on either the seller (the scalper) or the buyer. Using supply and demand analysis, show that there will be a larger impact on the equilibrium level of scalping if penalties are imposed on both sides of the market.