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:

Social Theorist

A scholar who develops frameworks and theories to analyze and explain social phenomena and behaviors.

Marx

A reference to Karl Marx, a 19th-century philosopher, economist, and sociologist whose works primarily focus on capitalism, class struggles, and social change through revolution.

Functionalism

A theory in sociology and anthropology that interprets society as a structure with interdependent parts designed to serve specific functions for the overall stability and continuity.

Coercion And Power

Involves the use of force or threats to make someone do something against their will, often examined within the context of social, political, or interpersonal dynamics.