Question

You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?

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Answer #1

The amount you paid three months ago is irrelevant to the costs now. Now the question is that whether you attend the concert or not. If you do not attend, you can sell the tickets for $225 apiece (i.e. $450 for two tickets). Thus, you forego $450 to attend the concert.

Thus, it costs $450 to you to attend the concert.

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