concert ticket resale
Economics
·
Supply and Demand
·
Law of supply
Easy
5 min
Why Do Sellers Love High Prices?
The hidden logic of the law of supply
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Ever wonder why your favorite concert tickets are cheaper when first sold but skyrocket in resale? Sellers know something you might not.
Imagine you're selling homemade cookies. If the price you can charge goes up, suddenly every batch you bake earns more cash. It's not just your sweet tooth that's happy—your wallet is too.
Here's the twist: every additional cookie you bake or ride you drive costs a bit more effort and ingredients. Economists call this 'marginal cost'. As prices climb, they're covering not just your base costs but also those pricier last units.
Make your call
Back to those concert tickets — when resale prices shoot up, what do you think sellers actually do? Tap your best guess.
A
They hold back tickets to keep prices high
B
They find ways to supply more tickets at the higher price
C
They lower prices to sell faster
Example
Let’s talk tech gadgets. When a new phone drops, companies flood stores with them. High launch prices cover the massive costs of development and production. But as prices fall, you see fewer models on the shelves.
Key Insight
That's the secret resellers already know — and now you do too: the higher the price, the more sellers are willing to supply. But remember, there's a sweet spot where buyers still bite. That's something we'll dive into next.
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Sources
Images from Wikimedia Commons. Attribution required by license.
concert ticket resale
Generated by Grok Imagine (xAI), prompt: Generate a single 16:9 horizontal image for an educational lesson. Lesson title: "Why Do Sellers Love High Prices?" · The hidden logic of the law of supply Domain: economics Subject: concert ticket re…
Homemade cookies for sale at the Casa de Artesanias in the San Marcos neighborhood of the city of Aguascalientes, Mexico
Thelmadatter · CC BY-SA 4.0
1913 photograph Ford company, USA
Ford company · Public domain
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