Question

Season tickets to the miami heat games are sold out at $30 a game and some people who wanted to get tickets couldn't buy them. as the season progresses, it is clear that the heat will make it to the playoffs. what is the effect on resale price of tickets to miami heat games, assuming resale is legal?

Answer 1

In this closed economy for basketball tickets, we experience a limited, finite supply, and an increasing demand for the tickets as the playoff season approaches. As such, we expect the demand curve to move through reselling until settling at a new equilibrium consisting of a much higher price for the tickets than the original $30 figure.