Wednesday, March 24, 2010

The Pull of Markets

In today's Daily Iowan there is a great article on the pull of markets. Given that demand (over 10,000) for attending President Obama's speech on Thursday is greater than the supply of tickets (750), at the price of zero - they were given away - then the market mechanism has started to take place, where some ticket recipients are willing to sell their tickets to those who value them at a greater rate. Thus we have the birth of a short lived market (tickets to attend the President's speech) and prices adjusting based on supply and demand.

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