Macroeconomics
13th Edition
ISBN: 9781337617444
Author: Roger A. Arnold
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
Chapter 5.8, Problem 2ST
To determine
The reason for not paying the college athletes.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
According to the readings, which of the following would likely NOT occur if college athletes could be paid in competitive markets?
a. College coaches would earn lower salaries
b. Subsidies from the academic side could increase
c. Ticket prices would rise to cover the players’ salaries (assuming fan demand is unchanged)
d. Fewer universities would have football programs
Confused on what to do to be able to solve
For theater tickets, the demand curve for students is QS=100−4PQS=100−4P and for the general public is QGP=200−4PQGP=200−4P.
Graph demand for students, the general public, and the market. (Hint: Don’t forget the kink.)
What is the equation(s) for market demand?
Chapter 5 Solutions
Macroeconomics
Ch. 5.1 - Prob. 1STCh. 5.1 - Prob. 2STCh. 5.2 - Prob. 1STCh. 5.2 - Prob. 2STCh. 5.3 - Prob. 1STCh. 5.3 - Prob. 2STCh. 5.4 - Prob. 1STCh. 5.4 - Prob. 2STCh. 5.5 - Prob. 1STCh. 5.5 - Prob. 2ST
Ch. 5.6 - Prob. 1STCh. 5.6 - Prob. 2STCh. 5.7 - Prob. 1STCh. 5.7 - Prob. 2STCh. 5.8 - Prob. 1STCh. 5.8 - Prob. 2STCh. 5.9 - Prob. 1STCh. 5.9 - Prob. 2STCh. 5.10 - Prob. 1STCh. 5.10 - Prob. 2STCh. 5.11 - Prob. 1STCh. 5.11 - Prob. 2STCh. 5.12 - Prob. 1STCh. 5.12 - Prob. 2STCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Prob. 3QPCh. 5 - Prob. 4QPCh. 5 - Prob. 5QPCh. 5 - Prob. 6QPCh. 5 - Prob. 7QPCh. 5 - Prob. 8QPCh. 5 - Prob. 9QPCh. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Prob. 13QPCh. 5 - Samantha is flying from San Diego, California to...Ch. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Prob. 1WNGCh. 5 - Prob. 2WNGCh. 5 - Prob. 3WNGCh. 5 - Prob. 4WNGCh. 5 - Prob. 5WNGCh. 5 - Prob. 6WNG
Knowledge Booster
Similar questions
- Starbucks has been very successful selling high-priced coffee despite the fact that consumers could easily substitute Starbucks coffee for less expensive coffee or substitute its coffee for less expensive drinks like soda, bottled water, or fitness drinks. a) Why do you think Starbucks has historically been so successful avoiding substitutes? b) Do you think its advantage is eroding in this area? If so why? c) If its advantage is eroding, what could the firm do to change this situation?arrow_forwardThe demand curve for a truckload of firewood for college students in a small town is Q = 500-p. It is sometimes convenient to rewrite a demand curve equation with price on the left hand side. We refer to such a relationship as the inverse demand curve. Therefore, the inverse demand curve for college students is The demand curve for other town residents is p=500-Q Q, 300-2p. What is the inverse demand curve for other town residents? The inverse demand curve for other town residents is p = 150-0.5Q At a price of $300, will any firewood be sold to college students? College students will demand 200 units of firewood. (Enter your response as a whole number.) What about other town residents? Other town residents will demand units of firewood. p. Price per unit of lumber 600- 550- D College students 500- 450- 400- 350- 300- 250- 200- Other residents D 150- 100- 50- 0- 0 100 200 300 400 500 600 700 800 900 1000 Q, Quantity of lumber ♫ After plotting the final point of your multipoint curve,…arrow_forwardThere is often only one major league baseball team in a city. What effect does this have on ticket prices?arrow_forward
- In early 20th century, cars like the Ford Model T started to be mass produced and sold to the public. Although they were still expensive and still a luxury item. The number sold increased throughout the 1910's, and the price dropped. The demand curve for the Model T at this time was about: Q= 2,616,00-8617p+9.427p^2-0.003422p^3 a. If the number sold in 1910 was 19,293 cars what was the elasticity of demand at that time? b. Of tje mumber sold in 1916 was 577,036 cars, what was the elasticity of demand at that time?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_forwardWhich of the following is not a reason for the changing attitudes regarding sports gambling: (a) Gambling has become more commonplace with states having lotteries and casinos (b) Player salaries had increased (c) Increased awareness on the side of players as to the downside of gambling (d) Other countries that had allowed sports gambling for a while, did not seem to have worse sports corruptionarrow_forward
- Consider Cowboys Stadium, a large football stadium that can seat approximately 80,000 people (and hold over 100,000 people), located in Arlington, Texas. If the Super Bowl, the game that determines pro football's champion team for the year, is played in Cowboys Stadium, the quantity of parking spots demanded will far exceed capacity. On a typical game day in the regular season, the quantity of parking spots demanded will only slightly exceed capacity. For smaller events, less than half of the parking spots are typically filled. Assume the marginal cost of providing another parking spot, once the parking lot has already been built, is $0 up to capacity. In the following table, match each event to the most likely pricing strategy per parking spot. see screemshot for chartarrow_forwardThe quantity of a product demanded by consumers is a function of its price. The quantity of one product demanded may also depend on the price of other products. For example, if the only chocolate shop in town (a monopoly) sells milk and dark chocolates, the price it sets for each affects the demand of the other. The quantities demanded, q₁ and q2, of two products depend on their prices, p₁ and P₂, as follows: If one manufacturer sells both products, how should the prices be set to generate the maximum possible revenue? What is that maximum possible revenue? Enter the exact answers. P₁ = i P2 = The maximum revenue is i 91235-4p₁ - 2P₂ 92 = 220-3p₁ - 4P2. iarrow_forwardSuppose Bull Gator Ben has paid his $14,300 donation and purchased eight season tickets at $32 per game. He discovers that he only needs seven tickets, and sells the eighth ticket for $150. Although he sold a ticket for $150, did he make a profit on the sale? (Hint: Compare what Ben paid to his revenue from selling the ticket)arrow_forward
- A university football team faces the following demand schedule shown for tickets for each home game it plays. The team plays in a stadium that holds 60,000 fans. It estimates that its marginal cost of attendance, and thus for tickets sold, is zero. The table below reflects this data: Price per Ticket ($) Tickets per Game 100 80 60 40 20 0 Total revenue = $ 20,000 40,000 60,000 80,000 100,000 Using this information, calculate how much total revenue the team will earn.arrow_forward17. University admissions Suppose the following graph shows the supply of and demand for admission to the University of British Columbia, where supply represents the number of student openings and demand represents the number of students who want to attend UBC (that is, the number of student applications) at any given level of tuition. Use the graph to help you answer the questions that follow. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Admission to the University of British Columbia 60 Supply 50 Demand 40 Supply 30 20 Demand 10 2 4 10 12 NUMBER OF STUDENTS (Thousands) The equilibrium level of tuition at UBC is s per academic year. If UBC sets its tuition at this price, the number of openings available will TUITION (Thousands of dollars)arrow_forwardNow let's introduce scholarships. These act as a subsidy by driving a wedge between the price that students pay for tuition and the amount that the university receives. In particular, we say that ps = p + B, where B is the "size" of the scholarship. Our new equilibrium condition is that 3ps = 40-pD. Substitute the identity for ps in terms of pD into the equilibrium condition (making sure to distribute the 3 correctly) and solve for equilibrium prices (with B still on the right-hand side). Next, plug ps into qs or pD* into qº to obtain the equilibrium number of students enrolled in terms of B. If the university seeks to enroll 33 (thousand) students, we In this case, we have ps* = $ must have B* = $ and pD* = $ If the university instead seeks to enroll 36 (thousand) students, we must have B** = $ . In this case, we have ps" = $ and pD** = $arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning