That is not capitalism. Capitalism is about creating a novel idea or improving on another and being better relative to the competition. Scalping tickets is hardly the American Dream. This was called d-bagism.
And I'm glad you paid attention during the first week of intro economics so you could deliver that insightful and deep lecture, but for those going on about a price ceiling when there is a market for it... the ceiling is there for a reason. Those tickets were not intended for the open market, they were intended for students. Most students can't afford them if they aren't subsidized a little bit. This is collegiate sports, not the NFL. Part of the allure and uniqueness comes from having a student section. And if you don't include the students now, how do you expect big, loyal donors to contribute once they make their money?
What about when someone on KillerFrogs has a few extra tickets? For frogs, usually they only ask for what they paid to recoup their costs. Could they have charged more? Absolutely. A university is a community, and that's a pretty cool thing you don't get in other aspects of life. If you don't its that cool, go be a cowboys fan and pay $500 to watch that bs.