Question

How might Ticketmaster’s online auction program lead to market equilibrium for the best tickets?

Answer 1

The tickets in the auction were sold to highest bidder only thus leading to the reduce in demand of sale also and bringing it equal to the supply of sale.

Explanation:

Auction means that there is sale of ticket to the people who bid the highest for that ticket. Because of this highest bidding, there is increase in the price of the good and this leads to the demand of sale reduces because of the increase in price of the ticket.

So the demand of ticket gets equal to the supply of the ticket. This leads to equilibrium situation in the market which means that there is equality of demand and supply of the goods in the market.