Supply And Demand At The University Of Michigan

Collegiate athletics have long played an integral role in higher education in the United States. The popularity of collegiate football in America is unprecedented. “The fan frenzy surrounding teams, games, and the sport itself, is borderline barmy. Aptly described as the thrill of victory and the agony of defeat, fan emotions in college football are rampant” (Moore, B., 2010). Football programs are able to generate a great deal of revenue through gate receipts (Groza, M. D., 2010). Football game day attendance is also an excellent proxy for other revenues such apparel sales and concessions.

Sports teams are switching to a variable-pricing strategy for tickets so that they can get a higher profit on games with record attendance numbers. They feel the need to do so because the marginal costs, such as construction payment and players’ salaries, did not equal to the marginal revenue, since attendance was severely dropping. To pay for the marginal cost, the sports team needed to capitalize on things that they were sure of, like increasing attendances to games between major sporting rivals.

Each season college students and fans support their sports team in hopes of a National Championship Title. They purchase season tickets, team clothing, and expensive sports packages from television providers in order to watch their team from afar. This generates a lot of cash for universities and retailers.

Then came the concern that the universities built stadiums that were too big. Many feared that there would not be enough people to fill the seats on game day. A majority of the stadiums were built too large for the time period. The teams had to grow their fan basis by winning important games in order to get more people through the gates. Also, many stadiums were built to hold one big game and crowd a year. But, would this one game bring enough money in to pay off the millions of dollars that were spent to build the stadium? The large stadiums eventually paid off when the fan base became larger, but it took years for that to happen. Now, there are so many people that want to come to the games that there is simply not enough room for everyone.

Recent medical advances have greatly enhanced the ability to successfully transplant organs and tissue. Forty-five years ago the first successful kidney transplant was performed in the United States, followed twenty years later by the first heart transplant. Statistics from the United Network for Organ Sharing (ONOS) indicate that in 1998 a total of 20,961 transplants were performed in the United States. Although the number of transplants has risen sharply in recent years, the demand for organs far outweighs the supply. To date, more than 65,000 people are on the national organ transplant waiting list and about 4,000 of them will die this year- about 11 every day- while waiting for a chance to extend their life through organ donation

The growing interest and boom in popularity in the sport was obvious, in fact the change was so quick and the colleges, with their old-school style stadiums meant for crowds who, only a few years ago, would have been in much smaller proportions, were run over with the amount of people that came in to watch their games. In 1922, it was estimated that 500,000 people were turned down from buying tickets simply due to the lack of space. The total number of fans themselves was growing rapidly as the number grew, in fact in one year alone the total number of fans went from 10 million in 1924 to 12 million in 1925. Because of this school directors and boards of committees saw the major economic implications ahead of them and decided that in order to maximize profits they should simply build bigger stadiums, which they did. Yale was one of the first to see the coming boom and quickly raised its capacity from 50,000 in 1903 to 78,000 by 1914. With the amount of fans growing unproportionately to the growing sizes of the stadiums growing so rapidly talks of a 165,000

For example, in the article it states that, “ In summertime, when the living is easy and children need entertaining, demand is high, and relatively insensitive to price” (S.K., 2016) This can be further proven with Disney display of their demand-based pricing. Demand-based pricing also known as customer-based pricing, is any pricing method that uses consumer demand - based on perceived value - as the central element. (https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/pricing-8/general-pricing-strategies-62/demand-based-pricing-310-4130/). As a result, the demands can be reflected upon the pricing. Referring to figure one, when the calendar dates are highlighted in bronze, that indicate that demands are below-average which unveiled the cheaper pricing that Disney theme parks offer at $105 per day. However, when the dates on the calendar are highlighted in silver that represent the average crowd days which the pricing is at $115 per day. And during Disney parks crowded day are when the demands are above average, the price increase to $125 per

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

Southwestern University: F The recent success of Southwestern University’s football program is causing SWU’s president, Joel Wisner, more problems than he faced during the team’s losing era in the early 1990s. For one thing, increasing game-day attendance is squeezing the town of Stephenville, Texas and the campus. Complaints are arising over parking, seating, concession prices, and even a shortage of programs at some games. Dr. Wisner, once again, turns to his stadium manager, Hank Maddux. This time, he needs a guaranteed revenue stream to help fuel the stadium expansion. One source of income could easily be the high-profit game programs. Selling for $6 each, programs are a tricky business. Under substantial pressure from

Due to the high costs the goal of breaking even is a large task. At current product prices a profit of $53,676 can be expected. This is total by 21,582 who will at least attend one game. Next we can assume that amongst that population of 21582 54% would be interested in going to one game, 28% interested in at least 5, 13% would be interested in half season and 5% in full. Of the 54% who will attend one game 80% would pay $10.

B. The ticket purchasers (represented by 10,000 QD) will pay the ticket scalpers for any price above $130 up to the equilibrium price of $2,000. The graph below illustrates the range of $200 to $2,000.

Different market decisions determine how an economy is run. There are several different factors that account for how markets make their decisions, which determines how they function. The theory of markets mostly depends on supply and demand. However, it is key to note that there is a difference in demand/supply and quantity demanded/supplied. A demand is how much the buyer plans to purchase at various markets prices and the quantity demanded is what the buyer actually purchases at a particular price. Supply is the producer or the seller’s plan of the amount the seller will make available at different market prices and the quantity supplied is the actual amount that the seller makes available at a particular market price. It is important to

When I had to buy the tickets, I still had to pay the extra ten dollars. The first trip to the Interest Bank Arena I was four dollars short. I had to go back home to get the extra money, and go all the way back to downtown. I don’t live extremely far from downtown, but it was just a hassle since I was taking care of my four year old cousin too and she fell asleep in the car. So, after going back to Interest Bank Arena I was finally able to buy the tickets for thirty dollars which I was kind of bothered about.

New ways of revenue generation: Seats are generally sold at full face value, Sponsors from Corporations.

Summary: Southwestern University is a state college in Stephenville, Texas. The college is known for its Football and have been in the top 20 in the rankings since the appointment of legendary Bo Pitterno in 2001 as the Head coach for the team. The coach requested to upgrade the stadium or construct a new stadium to accommodate the large fan base. This request was heard by the SWU’s president, Dr Joel Wisner, who decided that they would upgrade the stadium based on a forecast of when the current stadium would max out.