Argentina has a strong football tradition. Its national football team has appeared in five World Cup finals,

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Argentina has a strong football tradition. Its national football team has appeared in five World Cup finals, and among several accolades, it has won the Copa América 14 times. The Argentine Olympic team won Olympic football tournaments in Athens (2004) and in Beijing (2008). When the national team is playing in its home stadium, many people travel to Buenos Aires to see the games, and hotel prices can rise substantially. Use a supply-and-demand diagram to explain the sharp rise in hotel room prices. In doing so, consider carefully the shape of the supply curve and what happens when all the hotel rooms are filled.

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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