Question

Many Super Bowl football tickets are resold online for several times their face value. As the game day approaches, unsold tickets will likely:

a) rise in price to make up for unsold tickets.

b) rise in price to target desperate last minute buyers.

c) fall in price to avoid letting the ticket go unsold.

d) fall in price because demand falls as game day nears.

Answer 1

Answer:

The answer is b) rise in price to target desperate last minute buyers.

Explanation:

Last minute buyers would buy the tickets despite the increase in price. Revenue is likely to be maximized from the premium in the tickets' price.