Question: For decades, the mob ran a numbers game in which participants who matched three numbers chosen at random would win a prize. In the 1970s,

For decades, the mob ran a “numbers game” in which participants who matched three numbers chosen at random would win a prize. In the 1970s, state governments began authorizing state lottery commissions; those commissions typically offered games similar in structure to the numbers game. Using supply and demand analysis:
a. Predict the effect of the creation of state lotteries on the number of people playing numbers-type games.
b. Predict the effect of the creation of state lotteries on the number of people playing mob-run numbers games.
c. Predict the effect of the creation of state lotteries on the price of playing a numbers-type game.
d. Numbers games are unusual in that tickets don’t typically vary in their nominal price — most tickets sell for exactly $1. Given that the nominal price is fixed, how might the price change you indicated in (c) be achieved?

Step by Step Solution

★★★★★

3.36 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The authorization of the state lottery commissions wo... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

720-B-E-D-S (1504).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

For decades, efforts to end world poverty have focused on redistributing wealth, rather than creating it. How successful has this approach been in fostering long-term economic progress?

Why should it matter legally whether Professor Anspach is correct that Hasbro's Monopoly game closely resembles a game that had been played for decades before Charles Darrow claimed to have invented...

After two decades of advertising in Super Bowl matchups, PepsiCo opted out of the Big Game in 2010 and redirected funds into a social networking campaign called "Refresh Everything." The campaign,...

12. For decades, the mob ran a numbers game in which participants who matched three numbers chosen at random would win a prize. In the 1970s, state governments began authorizing state lottery...

Why is Brazil different and how? What effect did the inflation have on people's behavior? Why was there little or no lending at any interest rate fixed for more than one day? What was wrong with...

\fThis is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Questions: Why is Wal-Mart successful in the US? What are its competitive advantages? Should Wal-Mart replicate its domestic model in its original form in China? Why? Can it build the same...

ITEM #1 LEARNING FROM THE HEADLINES True to the Learning from the Headlines approach of this course, watch the Part Three Intro Video after you read the short article the video highlights. Notice...

What are some of the lessons T. Sowell wishes us to learn regarding the examples of Toyota, McDonalds, and Howard Johnson? Explain their successes and/or mistakes, as well as those of some of their...

Ross Corp.s first year of operations was 20X2. Income for the following five years is reported below. There are no temporary or permanent differences during these five years. Rosss policy regarding...

What is the difference between willingness to accept and willingness to pay? For a trade to take place, does the willingness to accept have to be lower, higher, or equal to the willingness to pay?

3, 8, 11 Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your...

In preparing the financial statements for the year ended 31 December 20X5 Alpha plc discovers the following, all of which are material in the context of the companys results: Development expenditure...

A tax increases the price paid by buyers and reduces the price received by sellers; it makes society worse off. In contrast, a subsidy reduces the price paid by buyers and increases the price...

Government believes that access to the Internet is essential in today's society, and to bolster access, it is proposing subsidizing the purchase of mobile devices. The inverse demand for mobile...

Increases in demand generally result in increases in consumer surplus. But that's not always true. Illustrate a situation in which an increase in demand actually results in a decrease in consumer...

Coffee/Tea Canned Snacks & Candy Fall Fall Fall Other Table 1 ASP $ $ $ $ 2009 3,136.48 (1,874.29) 1,262.19 (750.00) (250.00) Spring 2010 3,250.97 (1,760.43) 1,490.54 (750.00) (250.00) 2010 3,292.65...

Suppose that you are making monthly payments on your home mortgage ( 5 % Annual Percentage Yield or APY ) , car loan ( 7 % APY ) , home improvement loan ( 1 0 % APY ) , and charge card accounts ( 1 9...

Problem Unit 4: Linear Programming (graphical method) A freight company handles shipments by two corporations, A and B that are in the same city. Corporation A ships boxes that each weigh Big and...