The music business has been in a funk ever since 2001. Sales of albums in the U.S. are down 45% from their 2000 peak. But over that same period, concert-ticket sales have more than doubled, to $4.2 billion last year, according to trade magazine Pollstar.
A) Draw a supply/demand diagram showing the changes in the market for live rock concerts over the period 1998 and 2008 that is consistent with the facts given above about ticket prices, ticket sales revenues and implied changes in numbers of concert tickets purchased. Be sure to clearly label your axes and all lines in your diagram
B) Why do you think fewer rock albums are sold now despite the surge in sales of tickets to live performances.? Explain your answer in terms of shifts in supply and/or demand shifts for albums.