Managing our nation’s economy during war can be quite laborious. Politicians and economist already have a difficult task balancing marginal benefit and marginal cost during times of peace, adding war to this equation only make the task more difficult. Inflation, higher taxes, and greater deficit are all consequences of war. When the smoke clears, it is the consumer and taxpayers footing the bill.
During national conflicts, our government is forced to allocate more resources to national defense. This redistribution of resources directly affect MB and MC causing imbalances throughout the economy. Certainly a strong military provides safety for American citizens which leads to a better quality of life, however, those resources are taken away …show more content…
When there is an imbalance, the consumer and the taxpayer are effected the most.
Ticket scalping just as any exchange of goods or services has an effect on the consumer and the economy. Although ticket scalping is prohibited in many states, there are firms that thrive off this industry. This secondary market can have a positive effect for the consumer and the economy.
Stubhub is one of the industry leaders when it comes to the reselling of event tickets. With 3 billion dollars in total ticket revenue last year, Stubhubs success has proven there is market for the reselling of event tickets. Many event promoters price tickets below equilibrium price to ensure that an event sell out. Let us consider the National Football League for an example, if football games are not sold out then local games are subject to blackouts that prevent local networks from broadcasting the game. This blackout will have an effect on the networks revenues and revenues generated by the NFL through broadcasting deals. These losses of revenues will eventually be pushed onto the consumer through higher priced parking and higher priced goods at these events. Secondary ticket selling markets create by allowing MB and MC to equal
During national conflicts, our government is forced to allocate more resources to national defense. This redistribution of resources directly affect MB and MC causing imbalances throughout the economy. Certainly a strong military provides safety for American citizens which leads to a better quality of life, however, those resources are taken away …show more content…
When there is an imbalance, the consumer and the taxpayer are effected the most.
Ticket scalping just as any exchange of goods or services has an effect on the consumer and the economy. Although ticket scalping is prohibited in many states, there are firms that thrive off this industry. This secondary market can have a positive effect for the consumer and the economy.
Stubhub is one of the industry leaders when it comes to the reselling of event tickets. With 3 billion dollars in total ticket revenue last year, Stubhubs success has proven there is market for the reselling of event tickets. Many event promoters price tickets below equilibrium price to ensure that an event sell out. Let us consider the National Football League for an example, if football games are not sold out then local games are subject to blackouts that prevent local networks from broadcasting the game. This blackout will have an effect on the networks revenues and revenues generated by the NFL through broadcasting deals. These losses of revenues will eventually be pushed onto the consumer through higher priced parking and higher priced goods at these events. Secondary ticket selling markets create by allowing MB and MC to equal