Learn Before
Demand and Supply in a Football Ticket Market
This example illustrates a market for football tickets where it is assumed that all trades occur at a single price within a competitive market, meaning both buyers and sellers are price-takers. On the demand side, six supporters of the Blue team wish to purchase tickets, with their individual willingness to pay (WTP) being 8, 7, 6, 5, 4, and 3. This set of valuations constitutes the market's demand schedule. On the supply side, six supporters of the Red team currently hold tickets, and their reservation prices, or willingness to accept (WTA), are 2, 3, 4, 5, 6, and 7, which establishes the market supply.
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Sociology
Social Science
Empirical Science
Science
Economics
Economy
Introduction to Microeconomics Course
CORE Econ
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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Demand and Supply in a Football Ticket Market
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Learn After
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In a market for football tickets, there are six potential buyers with maximum willingness-to-pay values of $8, $7, $6, $5, $4, and $3. There are also six current ticket-holders with minimum willingness-to-accept values of $2, $3, $4, $5, $6, and $7. If all transactions in this market occur at a single, market-clearing price, what are the total gains from all trades that will take place?
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Consider a market for football tickets where six potential buyers have individual willingness-to-pay values of $8, $7, $6, $5, $4, and $3. Six current ticket-holders have individual willingness-to-accept values of $2, $3, $4, $5, $6, and $7. If a regulation imposes a maximum price of $4 per ticket, what will be the outcome in this market?
In a market for football tickets, there are six potential buyers with willingness-to-pay values of $8, $7, $6, $5, $4, and $3. Six current ticket-holders have willingness-to-accept values of $2, $3, $4, $5, $6, and $7. Match each potential market price with the corresponding state of the market.
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Consider a market for football tickets with six potential buyers having willingness-to-pay (WTP) values of $8, $7, $6, $5, $4, and $3. Six current ticket-holders have willingness-to-accept (WTA) values of $2, $3, $4, $5, $6, and $7. All trades occur at a single market price. Evaluate the following statement: 'Any single price set strictly between $4 and $6 (for example, $4.50 or $5.50) will result in the maximum possible number of mutually beneficial trades.'
Consider a market for football tickets with six potential buyers having willingness-to-pay (WTP) values of $8, $7, $6, $5, $4, and $3, and six current ticket-holders with willingness-to-accept (WTA) values of $2, $3, $4, $5, $6, and $7. If the government imposes a $2 per-ticket tax on the sellers, what will be the new number of tickets traded and the new market price?
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