Article Summary Based on Resale Prices for Tickets for the 2013 Super

question 187

Multiple Choice

Article Summary
Based on resale prices for tickets for the 2013 Super Bowl in New Orleans, face-value prices for the most expensive tickets to the 2014 game are expected to more than double, with significant price increases for lesser-valued tickets as well. Evidence indicates that sports teams are more interested in maximizing attendance instead of ticket revenue, since greater attendance means more spending on items such as parking and concessions. Higher ticket prices in secondary markets seem to verify that teams are charging less than they could be if their goal was to maximize ticket revenue.
Source: Patrick Rishe, "Super Bowl XLVIII Pricing: A Lesson In Demand Elasticity," Forbes, September 19, 2013.
-Refer to the Article Summary. How would sports teams know if they were operating on the elastic portion of the demand curve for tickets?

• A) If they increased ticket prices and the total revenue from ticket sales increased.
• B) If they increased ticket prices and the total revenue from ticket sales did not change.
• C) If they increased ticket prices and the total revenue from ticket sales decreased.
• D) If they decreased ticket prices and the total revenue from ticket sales did not change.

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Definitions:

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A monetary penalty imposed by a court or regulatory body, the amount of which is decided at the discretion of the authority based on the circumstances of the case.

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Organisms or mechanisms that transmit pathogens from one host to another, or in mathematics, quantities that have both magnitude and direction.

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An animal or species that harbors a pathogen for an extended period without suffering from its adverse effects, serving as a source of infection.

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The process of identifying and communicating potential risks and dangers associated with chemicals or hazardous materials.