TITANIC


A ticket for the Titanic's ill-fated voyage that belonged to the last survivor with memories of the disaster sold to a collector from the United States at a British auction on Saturday. Lillian Asplund, who died in 2006 at the age of 99, was the last remaining survivor with memories of the Titanic's sinking. Others had been too young at the time of the sinking to recall their experience.

Asplund was 5 years old when the Titanic hit an iceberg and sank during its maiden voyage from England to New York. Her father and three siblings were among the 1,500 people who died.

Asplund's ticket sold for 33,000 pounds ($65,772; euro41,500), auctioneer Andrew Aldridge said.

Another key item sold from Asplund's collection was her father's pocket watch, which reportedly stopped at the exact moment the ship sank in April 1912. Aldridge said the hands of the watch were stopped at 2:19 a.m., when Asplund's father Carl fell into the North Atlantic and seconds before the Titanic disappeared beneath the waves. The watch was bought by a Swedish collector for 31,000 pounds (US$61,786; euro38,974), Aldridge said.

He said most of Asplund's collection of 364 items, which included rare photographs of the Titanic and post cards printed to mark the voyage, had been sold at Saturday's auction. The lots were previously kept at Asplund's home in Massachusetts, in the U.S., and have never been seen before in public, he said. Her collection is ``one of the most important of its type to be offered in recent years,'' Aldridge said. Asplund's parents, Carl and Selma, and their five children were traveling on the Titanic as they headed from their home in Sweden to the U.S. to make a new life in Worcester, Massachusetts, Aldridge said. Lillian, her youngest sibling, Felix, and their mother, Selma, all survived the sinking. Before her death, Asplund was the last American survivor of the disaster. Aldridge said he could not disclose any further details about those who purchased the items.

WOW. Can you imagine selling your tickets and watches at such a high price?

What exactly are the reasons for this?
1. There is only 1 SUCH watch and possibly only a few of such tickets. Thus, supply will take the form of a vertical straight line, instead of the normal postive curve we usually see.

2. Demand, on the other hand, is the normal negative curve we usually see. Since those that bought these items are collectors, it means that it is like a habit/addiction for them to buy these items, thus, no matter how high the price goes up, these collectors will still fork out the money to buy these items. Thus, this means that demand is price inelastic.

Thus, due to a restricted supply and a price inelastic demand, the prices for these goods are very high.




hope i didnt make any mistakes!

<3MELINDA