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Unformatted text preview: reduce the next season ticket prices or not. Now, here is the question. Yankee has a surplus of ticket, so it should reduce the prices, but what price should Yankee set? The answer is setting the price in equilibrium price. It is the price where the intentions of buyers and sellers match and quantity demanded equals quantity supplied. Yankee will sell all the tickets and get the maximum profit in this price. However, reducing ticket prices may be a bad news for the people who have already purchased tickets. Those people might think if they had bought the ticket later, they would have got the best deal. Even though Yankee offered free seat for them, some people may want cash back....
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This note was uploaded on 04/17/2011 for the course ECON 202 taught by Professor Kotlove during the Spring '11 term at Edmonds Community College.
- Spring '11