3.6 Discussion: Market Efficiency

Goal - The purpose of this discussion is to apply the market efficiency rules in real life.

https://www.usnews.com/opinion/articles/2016-10-04/why-congress-shouldnt-curb-ticket-scalping-after-hamilton-prices-soar

In your post please include the following:

Read the article 'Scalping Isn't Scamming'(Links to an external site.)and discuss the following (Your comments should include microeconomic concepts such as equilibrium, consumer surplus, producer surplus, and market efficiency)

1. Using the supply and demand model explain the preset ticket price for Hamilton. Is the price for Hamilton the equilibrium price?
2. How do you explain scalping using the market efficiency rules? Which buyers buy the tickets from scalpers at higher prices? How does scalping affect consumer surplus?
3. Do you agree with the contributor's statement: "Laws to prevent scalping are unnecessary and prevent mutually beneficial transactions"? "[With scalping]the ticket producer, the scalper and the people who attend the event will each be better off."
4. Do you think there should be laws against reselling tickets above their face value? Why or why not?
5. Give an example of consumer surplus or producer surplus from your own experiences. How is your willingness to buy or your cost affect your consumer surplus or producer surplus?