Elasticity and Pricing
Principles of Economics: Markets, Maximizers, and Efficiency
The Concert Ticket Industry Is Still Broken
Chapter 3: Key Terms
Chapter 3: Key Concepts and Summarty
Chapter 3: Self Check Questions
Chapter 3: Review Questions
Chapter 3: Critical Thinking Questions
Chapter 3: Problems
Chapter 5: Key Terms
Chapter 5: Key Concepts and Summary
Chapter 5: Self Check Questions
Chapter 5: Review Questions
Chapter 5: Critical Thinking Questions
Chapter 5: Questions
Economic Efficiency and Government Intervention: Course Map & Recommended Resources
This topic is not often covered explicitly in a principles of macroeconomics course. Nonetheless, the topic of economic systems might lead to coverage of efficiency and government intervention.
- Identify consumer and producer surplus (1, 16)
Understand the concept of economic efficiency (1)
Examine cases for and against government intervention (16)
Illustrate the impact of price floors and ceilings with the supply/demand model (9,16)
Illustrate the impact of taxes with the supply/demand model (9,16)
NOTE: This Module meets Ohio TAG's 1, 9 and 16 for an Intro to Macroeconomics Course
Recommended Textbook Resources
Important Notes for the instructor regarding this chapter:
This topic is not often covered explicitly in a principles of macroeconomics course. Nonetheless, the topic of economic systems might lead to coverage of efficiency and government intervention. Section 3.5 is included in the main text’s demand and supply chapter, and covers the first 4 learning objectives.
Principles of Macroeconomics 2e. OpenStax CNX. Jun 4, 2018 , Section 3.5, pages 71-82
The topic of tax incidence is included in Section 5.3 in the chapter on elasticity. Section 5.3, pages 130-131.
Supplemental Content/Alternative Resources
Principles of Economics contains a chapter on Economic Efficiency (Chapter 6).
Important notes for the instructor regarding this source:
Principles of Economics is adapted from a work produced and distributed under a Creative Commons license (CC BY-NC-SA) in 2011 by a publisher who has requested that they and the original author not receive attribution. This adapted edition is produced by the University of Minnesota Libraries Publishing through the eLearning Support Initiative.
This adaptation has reformatted the original text, and replaced some images and figures to make the resulting whole more shareable. This adaptation has not significantly altered or updated the original 2011 text. This work is made available under the terms of a Creative Commons Attribution-NonCommercial-ShareAlike license.
This is a derivative of Principles of Economics by a publisher who has requested that they and the original author not receive attribution, which was originally released and is used under CC BY-NC-SA. This work, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Since this topic is micro-oriented and would generally be covered only briefly, a data question has not been included.
Active Learning Exercise
The article above is not in Creative Commons and is not an OER, but is freely available online. It contains an excellent overview of the inefficiencies of concert ticket sales, market solutions, additional problems, and the argument for government intervention. The following questions lend themselves to a classroom or small group discussion.
- What is the primary cause of the original inefficient outcome?
- How did the ticket market respond to create a solution?
- What secondary cause was created by the private solution?
- What government intervention was used to deal with this solution?
- What is your opinion on the current state of this market?
- Do you have ideas for other solutions?