You are missing his point. The buyers out there are PAYING these ridiculous ‘scalping’ prices.
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I won’t suggest that you have missed the point, simply that you are addressing another, different, point. From a theoretical point of view, you are absolutely correct, this is a classic supply and demand case study.
Taken out of its theoretical context, and placed into the real world, where this is actually playing out, it loses some of its theoretical purity. This is an artificially created scarcity, done for the specific purpose of driving up the price of the tix and the profits of the ticket brokers. Seen this way, the reality of the situation is a nice case study for how free markets can be manipulated.
It’s not really an artificial scarcity. If all the tickets went up for sale on Ebay for things like Hannah Montana with a starting bid of .01, they’d probably end up much higher than the current list price. Others could go lower. The venues price it themselves making an educated guess on what the supply/demand is plus what the artist/record(s) will allow to some degree. They are frequently wrong.