Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Read our full range of US High School economics picks here.
Click to read the article below and then answer the questions:
How Taylor Swift rules the live music economy
Discussion Questions
-
How has Taylor Swift’s strategy of communicating directly with fans through social media affected her brand? Explain using supply and demand
-
How has Taylor Swift’s transition from a country music artist to a pop icon along with her collaborations with artists from different genres expanded her audience and diversified her appeal?
-
What is the opportunity cost for fans who choose to travel to see Taylor Swift’s concerts, especially those who fly to different cities?
-
The author describes the “power law” and how it relates to Taylor Swift. What is the concept of a “power law” in the music business and how does it describe Taylor Swift’s success?
-
Analyse the effect of post-pandemic changes in consumer behaviour on the live music industry, using Taylor Swift’s concerts as an example
-
Discuss the “winner-takes-all” effect in the context of Taylor Swift’s global popularity and on ticket demand
Economic Research
-
Analyse the price elasticity of demand for Taylor Swift’s concert tickets. Given the high demand and fan dedication, what type of elasticity of demand do her concerts exhibit and why?
-
Use a supply and demand graph for Swift’s concert tickets. When the Eras Tour was announced, how did the demand curve shift on the graph? Does it shift to the right indicating an increase in demand, or to the left indicating a decrease? Show the change and what happens to the new price and quantity
-
Consider the supply curve: given the fixed number of concert venues and dates, is the supply likely to be elastic or inelastic, and how does this affect the equilibrium price?
Joel Miller and James Redelsheimer, Foundation for Economic Education.
Click here for FEE FT Classroom Edition with classroom-ready presentations and suggested answers for teacher.
