What's Your Price?

In this lecture clip, Dirk demonstrates how shifts in supply and shifts in demand affect pricing for goods. Using concert ticket pricing as an example, Dirk asks students to name the price they would pay for premium seats at their favorite concert. Student response to the activity illustrates how concert providers have to take into account the demand curve when pricing tickets. Conversely, students are asked to name the lowest amount they would accept if they had to provide "the full Monty" in front of their classmates. Here they are introduced to the pricing considerations that producers encounter in the supply curve.