Lets explore the concept of willingness-to-pay with a thought experiment.

On 7:30 PM Saturday, 6 September, North Queensland Cowboys will play against Manly-Warringah Sea Eagles at the 1300 Smiles Stadium in Townsville. Imagine you would very much like to attend this event.

(a) What is the most you would be willing to pay for a ticket to the event? (Dont be surprised by the question! Please just tell me how much dollars you are willing to pay for this ticket. If you answer it, you get the marks.) (3 Marks)

(b) Have you ever played rugby before? (1 Mark)

(c) Imagine that you won a ticket to the event in a lottery. What is the minimum amount of money that you would be willing to accept to give up the ticket? (4 Marks)

(d) Imagine that you had an income 50 percent higher than it is now, but that you didnt win a ticket to the event. What is the most you would be willing to pay for a ticket? (4 Marks)

(e) Do you know anyone who would sufficiently dislike the event that they would not use a free ticket unless they were paid to do so? (4 Marks)

(f) Do your answers suggest any possible generalizations about willingness-to-pay? (4 Marks)