Question

Need help answering these 5 questions. The first picture is the story containing the information to answer those 5 questions.

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 pplying 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 Web sites have also popped up. Scalpers are well versed in logging on the minute tickets go on sale on Ticketmaster.com or another legitimate site and purchasing tickets at face value for resale at higher prices. A survey of U2 concertgoers in New York revealed that about 29 percent of concertgoers confessed to purchasing their tickets from unauthorized sites. In 2005, the highest price on eBay for two Madison Square Garden U2 tickets was $ 4.250 Part Il: StubHub recently listed Coldplay tickets for up to $ 2.942 each: TicketsNow listed two front row Rolling Stones tickets for $7,410. These markups are huge: face-value tickets for the Rolling Stones concert, for example, sell from $ 60 to $ 450. In an effort to combat scalping, many singers and groups issue tickets directly to their fan club members However, managers of fan sites struggle to prevent scalpers from becoming fan club members. One Coldplay fan site was able to stop three scalping companies from buying presale tickets on the Coldplay fan sit Part II: Purchasing tickets online through unauthorized agents can pose risks. In some states scalping is illegal, and in others there is a legal limit to how much a scalper can mark up the ticket price. However, these laws often go unenforced and most were written prior to the Internet and do not cover out-of-state purchases made online. Buyers run the far more real risk of purchasing counterfeit tickets. Ticketmaster will, for a fee, send buyers their tickets via email, allowing them to print the tickets themselves. In May 2005, a few hundred concertgoers showed up at a U2 concert with what turned out to be Ticketmaster tickets printed multiple times

Answer 1

I have answered first four questoins, hope this helps!

1) As demand for tickets increases and supply of tickets decreases, the cost of the tickets increases

2) Scalping decreases the avilability of tickets through traditional channels, causing ticket price to increase

3) Scalpers purchase tickets that are undesirable to cusumers, forcing the scalpers to auction the tickets at a price lower than the original price offered by the retailer

4) Increase.

Since consumers do not aware of supply, they may end up paying higher prices to buy the tickets