Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Appendix - Appendix Problems - Page 74: 3b

Answer

A secondary market for tickets would be expected, where the price is higher than the price in the primary market.

Work Step by Step

At $45, quantity demanded is at 70 thousand, whereas quantity supplied is at 60 thousand. Thus, is a shortage of 10 thousand, and a secondary market will form to address this shortage and provide for the people who are willing but not able to purchase tickets. Since the equilibrium price is 65, (where both quantity demanded and quantity supplied is both 60 thousand), the price of the secondary market would at least be 65, since market forces of demand and supply would be able to determine the equilibrium price and quantity in the secondary market.
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