Suppose the Tampa Bay Rays baseball team charges $10 for bleacher seats (poor seats in the outfield)
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Suppose the Tampa Bay Rays baseball team charges $10 for bleacher seats (poor seats in the outfield) and sells 250,000 of them over the course of the season. The next season, the Rays increase the price to
$12 and sell 200,000 tickets.
a. What is the elasticity of demand for bleacher seats at Rays games using the point method?
b. What is the elasticity of demand for bleacher seats at Rays games using the arc method?
c. Assuming the marginal cost of admitting one more fan is zero, is the price increase a good idea?
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Related Book For
The Economics Of Sports
ISBN: 9781138052161
6th Edition
Authors: Michael A. Leeds, Peter Von Allmen, Victor A. Matheson
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