Prices Sky-Rock-Et This activity is important because around the world many economies—including those of the United States, Canada, and Japan—are based on free enterprise, and many communist and socialist countries—such as China and Russia—are applying more principles of free enterprise to their own economic systems. Free enterprise provides an opportunity for a business to succeed or fail on the basis of market demand. In a free enterprise system, companies are most likely to be successful if they can efficiently manufacture and sell products that consumers desire. The goal of this exercise is to demonstrate your understanding of the concepts of Free Enterprise and how a business may succeed or fail on the basis of market demand. Read the case below and answer the questions that follow. Part I: Once upon a time, long, long ago, people camped outside ticket offices and waited in long lines to buy tickets. The Internet has changed all that. Ticketmaster.com is known as the legitimate site for purchasing tickets, but scalping websites have also popped up. Scalpers were once required to log in the minute tickets went on sale on StubHub.com or another legitimate site and purchase tickets at face value for resale at higher prices. Now, many use computer programs called “bots” to purchase thousands of tickets in seconds that then appear on the resale market. In 2019, the secondary ticket market was estimated to be worth $15 billion dollars, and it is expected to reach $68 billion by 2025. None of this revenue goes to artists or venues.1 Part II: According to the SeatGeek website, Lady Gaga tickets ranged from about $350 to nearly $13,000 at Park Theater in Las Vegas. Tickets to see the Rolling Stones cost as much as $9,600 on VividSeats, and SeatGeek recently listed tickets to see Queen with Adam Lambert for as much as $2,066 each. These markups are huge: face-value tickets for the Lady Gaga series, for example, sell from $80 to $600. In an effort to combat scalping, many singers and groups issue tickets directly to their fan-club members but still struggle to keep scalpers from gaining access via fan sites. After over 30% of tickets for Taylor Swift’s 2015 tour went on the resale market, she took extreme measures to verify fans for her 2018 concert, and hiked up the cost of tickets to nonfans, resulting in only 5% of tickets purchased on the resale market.2 Part III: Purchasing tickets online through unauthorized agents can pose risks. The Better Online Tickets Sales (BOTS) Act was enacted in 2016. It is tough to take action against those who buy tickets illegally. Instead, it is often the buyer who pays the price. Buyers not only carry the burden of the increased price of concert ticks but also run the far more real risk of purchasing counterfeit tickets. More than 5 million fake concert tickets are sold every year, and there is very little buyers can do to verify that tickets purchased on the secondary market are legitimate, especially when tickets are purchased from sites like eBay and Craigslist. New blockchain and anticounterfeiting technologies may reduce scalping and counterfeiting in the future. In the meantime, some artists are even hosting “beat the bot” events, again selling tickets through a face-to-face ticket office and having fans line up and camp out to wait to buy tickets. 1 https://bigthink.com/politics-current-affairs/scalping2 https://qz.com/quartzy/1427597/taylor-swift-is-smart-enough-to-not-let-her-shows-not-sell-out/Which of the following best describes the negative impact of ticket scalping?Multiple ChoiceScalping decreases the availability of tickets through traditional channels, causing ticket prices to increase.Scalping decreases the availability of tickets through traditional channels, causing demand to decrease.Scalping decreases the availability of tickets through traditional channels, causing demand to increase.Scalping decreases the availability of tickets through traditional channels, causing ticket prices to decrease.

Required informationSkip to question Concert Ticket Prices Sky-Rock-Et This activity is important because around the world many economies—including those of the United States, Canada, and Japan—are based on free enterprise, and many communist and socialist countries—such as China and Russia—are applying more principles of free enterprise to their own economic systems. Free enterprise provides an opportunity for a business to succeed or fail on the basis of market demand. In a free enterprise system, companies are most likely to be successful if they can efficiently manufacture and sell products that consumers desire. The goal of this exercise is to demonstrate your understanding of the concepts of Free Enterprise and how a business may succeed or fail on the basis of market demand. Read the case below and answer the questions that follow. Part I: Once upon a time, long, long ago, people camped outside ticket offices and waited in long lines to buy tickets. The Internet has changed all that. Ticketmaster.com is known as the legitimate site for purchasing tickets, but scalping websites have also popped up. Scalpers were once required to log in the minute tickets went on sale on StubHub.com or another legitimate site and purchase tickets at face value for resale at higher prices. Now, many use computer programs called “bots” to purchase thousands of tickets in seconds that then appear on the resale market. In 2019, the secondary ticket market was estimated to be worth $15 billion dollars, and it is expected to reach $68 billion by 2025. None of this revenue goes to artists or venues.1 Part II: According to the SeatGeek website, Lady Gaga tickets ranged from about $350 to nearly $13,000 at Park Theater in Las Vegas. Tickets to see the Rolling Stones cost as much as $9,600 on VividSeats, and SeatGeek recently listed tickets to see Queen with Adam Lambert for as much as $2,066 each. These markups are huge: face-value tickets for the Lady Gaga series, for example, sell from $80 to $600. In an effort to combat scalping, many singers and groups issue tickets directly to their fan-club members but still struggle to keep scalpers from gaining access via fan sites. After over 30% of tickets for Taylor Swift’s 2015 tour went on the resale market, she took extreme measures to verify fans for her 2018 concert, and hiked up the cost of tickets to nonfans, resulting in only 5% of tickets purchased on the resale market.2 Part III: Purchasing tickets online through unauthorized agents can pose risks. The Better Online Tickets Sales (BOTS) Act was enacted in 2016. It is tough to take action against those who buy tickets illegally. Instead, it is often the buyer who pays the price. Buyers not only carry the burden of the increased price of concert ticks but also run the far more real risk of purchasing counterfeit tickets. More than 5 million fake concert tickets are sold every year, and there is very little buyers can do to verify that tickets purchased on the secondary market are legitimate, especially when tickets are purchased from sites like eBay and Craigslist. New blockchain and anticounterfeiting technologies may reduce scalping and counterfeiting in the future. In the meantime, some artists are even hosting “beat the bot” events, again selling tickets through a face-to-face ticket office and having fans line up and camp out to wait to buy tickets. 1 https://bigthink.com/politics-current-affairs/scalping2 https://qz.com/quartzy/1427597/taylor-swift-is-smart-enough-to-not-let-her-shows-not-sell-out/Which of the following scenarios involving scalpers is likely to result in prices for consumers that are lower than the initial price listed by the legitimate retailer?Multiple ChoiceScalpers purchase tickets that are undesirable to consumers, forcing the scalpers to auction the tickets at a price lower than the original price offered by the retailer.Scalpers purchase all available tickets, allowing them to control the price offered to the general public.After scalpers purchase tickets, it is announced that a desirable and popular guest drummer will join the band.All of these choices are correct.

A free enterprise system is a type of economy that:A.focuses on producing and selling goods in local communities.B.ensures that all citizens have jobs and places to live.C.strictly controls corporations to protect consumers.D.prevents governments from interfering with businesses.

One of the key characteristics of the U.S. free enterprise system is:A.limited competition between large businesses in each industry.B.governments deciding which goods will be produced.C.businesses making decisions based on the profit motive.D.strict limits on the kinds of products available to consumers.

A free market is an economic system in which the prices of goods and services are determined by …............. expressed by sellers and buyersa.production and distributionb.scientific managementc.supply and demandd.social need

"The value in taking under-utilized assets and making them accessible online to a community, leading to a reduced need for ownership" best describes:Group of answer choicesSharing economyKnowledge economyGig economyFreelancing