TKTS, the discount ticket dealer for Broadway theatre tickets, is a great example of market forces. How does the price mechanism (equillibrium of supply and demand) work here? Read this article and judge for yourself.
Saturday, September 16, 2006
Markets on Broadway
TKTS, the discount ticket dealer for Broadway theatre tickets, is a great example of market forces. How does the price mechanism (equillibrium of supply and demand) work here? Read this article and judge for yourself.
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3 comments:
i think that markets on broadway are a very good example of supply and demand, and the equilibrium at work. once a show becomes popular and demand increases, the supply (amount of tickets) decreases. while in your struggle to buy tickets for the show at a reasonable price, you could run into many obstacles. but the equilibrium theory works. eventually, you will most likely find a ticket, a good ticket, for a cheap price. like the author of this article did.this is a clear example of the price mechanism at work.
Price mechanism works in this article and at the TKTS booth. If a show is new to Broadway, and is trying to lure people into seeing it, producers will set aside tickets for the booth, since the demand is low. Once the show takes off and tickets are in higher demand (and the supply has gone down), fewer will be set aside for the booth to sell because more people are more willing to pay the full price. Once the show has been seen by the entire city of New York and the surrounding suburbs, the shows producers will likely set aside tickets for the booth again, since the demand has gone back down, and the supply has gone back up. The TKTS booth in this article is a great example of how price mechanism and supply & demand work.
Braodway tickets are a great example of supply and demand and how price mechanism works. With the determination of broadway to fill seats at all shows the producers set aside tickets to be purchased at lower prices. When a new or long lasting show is on broadway the demand for the tickets is low whille the supply is high, in this case more tickets will be set aside to be able to fill all the seats and gt promotion for the show. If the show was to become at hit that many wanted to see the demand would increase and the supply would decrease making prices higher and allowing less tickets to be left on the side to fill the seats.
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