Suppose the Tampa Bay Rays baseball team charges $10 for bleacher seats (poor seats in the outfield)

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Suppose the Tampa Bay Rays baseball team charges $10 for bleacher seats (poor seats in the outfield) and sells 250,000 of them over the course of the season. The next season, the Rays increase the price to

$12 and sell 200,000 tickets.

a. What is the elasticity of demand for bleacher seats at Rays games using the point method?

b. What is the elasticity of demand for bleacher seats at Rays games using the arc method?

c. Assuming the marginal cost of admitting one more fan is zero, is the price increase a good idea?

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Related Book For answer-question

The Economics Of Sports

ISBN: 9781138052161

6th Edition

Authors: Michael A. Leeds, Peter Von Allmen, Victor A. Matheson

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Question Posted: Mar 16, 2024 12:01 AM

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Suppose the Tampa Bay Rays baseball team charges $10 for bleacher seats (poor seats in the outfield)

Question:

Step by Step Answer:

The Economics Of Sports

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