Bundle: Managerial Economics, Loose-leaf Version, 5th + MindTap Economics, 1 term (6 months) Printed Access Card
5th Edition
ISBN: 9781337607995
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 12, Problem 12.2IP
To determine
The efficient revenue management for Cowboys Stadium, super bowl, and other small events.
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How do market frictions, such as long online queues and error messages, affect the supply and demand for tickets, and what impact does this have on the market?
A baseball team plays in a stadium that holds 72000 spectators. With the ticket price at $8 the average
attendance has been 29000. When the price dropped to $6, the average attendance rose to 36000. Assume
that attendance is linearly related to ticket price.
What ticket price would maximize revenue? $
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Question 20.span>20. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game
Price per Ticket
Quantity Demanded
$13
1,000
11
2,000
9
3,000
7
4,000
5
5,000
3
6,000
varies inversely with ticket prices.
varies directly with ticket prices.
is perfectly inelastic.
is perfectly elastic.
Chapter 12 Solutions
Bundle: Managerial Economics, Loose-leaf Version, 5th + MindTap Economics, 1 term (6 months) Printed Access Card
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- A baseball team plays in a stadium that holds 58000 spectators. With the ticket price at $11 the average attendance has been 26000. When the price dropped to $10, the average attendance rose to 29000. Assume that attendance is linearly related to ticket price. What ticket price would maximize revenue? $arrow_forward3.2. The stadium of the MANU has 30 seats. The demand curve for tickets has a price intercept of $36 and a quantity intercept of 72.3.2.1. Draw the supply and demand curves to scale (in Excel and copy it to your word answer-This demand curve has the form P = 36−0.5×Q.) 3.2.2. Determine the equilibrium admission price, and the amount of revenue generated from ticket sales for eachgame. 3.2.3. A local alumnus and benefactor offer to install 6 more seats at no cost to the University. Compute the price that would be charged with this new supply and compute the revenue that would accrue at this new equilibrium price. Should the MANU accept the offer to install the seats?arrow_forwardA baseball team plays in a stadium that holds 70000 spectators. With the ticket price at $12 the average attendence has been 30000. When the price dropped to $11, the average attendence rose to 35000. Assume that attendence is linearly related to ticket price.What ticket price would maximize revenue? $arrow_forward
- There is often only one major league baseball team in a city. What effect does this have on ticket prices?arrow_forwardA baseball team plays in a stadium that holds 50000 spectators. With the ticket price at $10 the average attendence has been 22000. When the price dropped to $8, the average attendence rose to 25000. Assume that attendence is linearly related to ticket price. What ticket price would maximize revenue? $arrow_forwardThe following table describes the demand for season tickets at Powerhouse University, a perennial football power Price per ticket per game Tickets Demanded $80 105,000 $90 100,000 $100 93,000 $110 85,000 $120 75,000 Currently the stadium seats 75,000 and season tickets are priced at $110. if the university expands the stadium to seat 90,000 and they do not raise ticket prices, by how much will revenue increase per game?arrow_forward
- Stephen Duford says he skipped the game with rival Toronto because of the price increases. "I do not agree that I have to pay extra to see certain teams," he says. "I don't pay less for teams that usually don't draw." What do you know about Mr. Duford's demand (willingness and ability to purchase) for tickets to see the Senators play Toronto?arrow_forwardDiscuss how may the concept of elasticities affect our country’s preference for commercial spaces and malls versus public parks and playgrounds. How does this choice impact the richness of our civic lives? Answer the question using 100-150 words only.arrow_forwardThe average ticket price for a concert at the opera house was $30. The average attendance was 5000. When the ticket price was raised to $33, attendance declined to an average of 4700 persons por performance. What should the ticket price be to maximize revenue for the opera house? (Assume a linear demand curve.) To maximize revenue, the price should be $ por ticket. (Type an integer or decimal rounded to two decimal places as needed. Simplify your answer.)arrow_forward
- What are the expected signs of the income elasticity of demand for high-speed rail and the cross elasticity of demand between high-speed rail and coaches. How does information on these elasticities help the high-speed rail company in business decisions? Explain.arrow_forwardFor each of the following cases, identify whether Total Revenue rises, falls, or remains constant. Explain using the 'arrow method' shown in class/ slides. (a) Demand is inelastic and price falls. (b) Demand is elastic and price rises. (c) Demand is unit elastic and price rises. (d) Demand is inelastic and price rises. (e) Demand is elastic and price falls.arrow_forwardb) When the price is $166.10, the demand is (elastic/inelastic) which means that as price the revenue will (increases/decreases) (increase/decrease)arrow_forward
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