Case

#1. As an artist starts to grow their fan base they begin to sell out venues, with limited seating available the supply of tickets remains the same but demands starts to grow. This is what inflates the prices of tickets, the ticket broker knows that increasing the price of tickets will not reduce the amount of people buying them.

#2. Ticket scalping essentially shortens the supply of a tickets while the demand remains the same, this forces people to start drastically over paying of tickets because they're left with no other option. Ticket scalpers are collecting extra profits that the producer could be collecting, this may cause the producers to exit their careers more quickly and discourage new promoters from entering the field. With no producers to be putting together concerts, sporting events, etc.., they will start becoming few and far between.

#3. For the consumers, ticket scalpers can actually be look at as a good thing. They're insuring that the tickets are in the hands of the biggest fans of the event. When a ticket is marked up 300%, a casual fan or someone who was planning on buying a ticket just for something to do is not going to pay that.

Questions

#1. The main goal of a business is to earn a profit. They need to determine the difference between the cost it takes to manufacturer a product and sell it, and what a consumer will pay for that product.

#2. Communism – an economic system in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Socialism – an economic system in which the government controls the production and distribution of goods, but individuals own most businesses.

Capitalism – an economic system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

Mixed Economies – an economic system that takes