EBK THE ECONOMICS OF SPORTS
6th Edition
ISBN: 9781351684491
Author: LEEDS
Publisher: YUZU
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Chapter 2, Problem 3P
To determine
Explain the television rating during the NFL season.
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A local sports fan who cares little about performance in the regular season, and focuses only on championship results would likely measure competitive balance with what?
3.2. 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?
Is there an economic justification to pay the baseball player Alex Rodriguez $25 million a year? The quarterback Peyton Manning makes $14 million per year. Has this market gotten completely out of hand? Can there be any justification to some of the salaries paid? If so, what are the justifications? What impact do these salaries have on the sport? Are there good economic reasons for teams to pay these salaries?
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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_forwardA 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? $ Submit Questionarrow_forwardWhich of the following is most likely to increase demand for NFL games? A. A successful advertising campaign about the NFL B.A law passes that will increase taxes on consumers in two years C. A decrease in the price of college football tickets D. An increase in the price of chicken wingsarrow_forward
- 12. The Vanier Cup, the finals of Canadian University football, was held on November 26, 2016 at Tim Hortons Field in Hamilton, Ontario. The organizers learned a lot are already planning next year's event! Based on what they learned this year, they know that the demand function for tickets to the game will be given by q = 200, 000 - 10, 000p, where p is the price charged per ticket. The chief organizer for next year is an ambitious person who wants to set prices so as to maximize revenue. (b) Write down an expression for the inverse demand function (price as a function of quantity), total revenue (as a function of quantity), and marginal revenue (as a function of quantity). Find the quantity and price that generate maximum revenue. (c) Derive an expression for the elasticity of ticket demand with respect to price. (Hint: your elasticity should be a function of the price, p.) What is the value of the elasticity at the revenue-maximizing price (your answer for price from part b)?arrow_forwardThe English Premier League currently has no salary cap but is considering implementing one. They are doing this, in part, to reduce payroll disparities across teams that create competitive imbalance. How would the reduction in payroll imbalance affect the Gini Coefficient for the English Premier League?arrow_forwardIn 2014, the Seattle Seahawks won the Super Bowl. Draw a supply and demand graph for Seahawk tickets in the following season to show the impact of the Super Bowl win. (It would be the same graph for Seahawk t-shirts, hotdogs at the game and beer.)arrow_forward
- Multiple answers may be correct:arrow_forwardDescribe how each of the following will affect the demand for television sets a) a rise in incomes ( assuming televisions are considered to be normal good.) b) A higher expected future prices for television sets. c) Olympic is starting in next month, and the nation is crazy to watch Olympics.arrow_forwardUse the figure below, and the regular percentage change formula, to answer the following question: Supply $10 0 Quantity Assume that price decreases from $10 to $2. The price elasticity of supply is about Multiple Choice 4 and supply is elastic. 1 and supply is unit-elastic 1.25 and supply is elastic. 0.36 and supply is inelastic.arrow_forward
- Do you think college athletes should be paid, for either endorsement deals or for playing ?Are your arguments based on concerns about efficiency,fairness or both?arrow_forwardSanford stadium has 90,000 seats. What is the shape of the supply curve for tickets to football games at that stadium? Explainarrow_forwardpart c and darrow_forward
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