|Question||Every year there is a shortage of Super Bowl tickets at the official prices P0. Generally, a black market (known as scalping) develops in which tickets are sold for much more than the official price. Use supply and demand analysis to answer these questions:
a) What does the existence of scalping imply about the relationship between the official price P0 and the equilibrium price?
b) If stiff penalties were imposed for scalping, how would the average black market price be affected?