Knapp2 - WEEK2

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WEEK 2 CH3, Q2 – On Sunday, August 19, the Detroit Tigers and the New York Yankees played  baseball at Yankee Stadium. Both teams were in pursuit of league championships.  Tickets to the game were sold out, and many more fans would have attended if additional  tickets had been available. On that same day, the Cleveland Indians and the Tampa Bay  Devil Rays played each other and sold tickets to only 22,500 people in Tampa. The Devil  Rays stadium, Tropicana Field, holds 43,772. Yankee Stadium holds 57,478. Assume for  simplicity that tickets to all regular-season games are priced at $40. a. Draw supply and demand curves for the tickets to each of the two games.  (Hint: Supply  is fixed. It does not change with price.) Draw one graph for each game. b. Is there a pricing policy that would have filled the ballpark for the Tampa  game? If  the Devil Rays adopted such a strategy, would it bring in more or less revenue? Yes, the diagram indicates that if price were low enough the ballpark would be  filled to capacity. c. The price system was not allowed to work to ration the New York tickets  when they  were initially sold to the public. How do you know? How do you suppose the  tickets were rationed? First come, first serve at market price.
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This note was uploaded on 06/15/2010 for the course EC 142DLB taught by Professor Graceonodipe during the Spring '10 term at Park.

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Knapp2 - WEEK2

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