Diagram of the Demand Curve for Football Tickets

Market Operation Through Individual Bargaining

Excess Demand for London 2012 Olympic Tickets

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?

Calculating Surplus at a Fixed Price

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.

Analyzing a Shift in Market Supply

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?

Market Equilibrium Process

Equilibrium and Surplus in a Ticket Market

Analyzing the Impact of a Government Subsidy