Every year in September, the NFL (National Football League) announces official prices of their next Super bowl tickets. The official ticket prices for 2022 Super bowl ticket in the NFL official websites started from $6,800 per person and it was up to over $81,800 per person depending on the location of the seats from the field. However, about three fourth of all tickets were already distributed to the NFL teams. The other one fourth are distributed to the media, NFL partners and sponsors. As a result, a small fraction of a total of about 70,000 tickets were sold in the secondary market. Those tickets were available to buy and sell in the official NFL online sites and other ticket brokers. Given the limited supply of tickets available to the NFL fans to purchase, the actual prices are dominated by the wide fluctuation of demand caused by many factors such as the venue of the game, the winning teams for the championship match, the packages of tickets offered by the brokers, and the weather forecast right before the game day. The record shows that the actual selling prices can go many times higher than the above-mentioned range of prices posted in the NFL official online sites. Based on the information above and its relevance to the application of theories of demand and supply behavior in Economics, choose the correct answer out of the following 4 statements. O. None of these three statements are correct answers, need more information about the market. O. The market equilibrium price of all tickets in Miami, FL area (the venue of 2020 Super Bowl Game) will be still much higher than the new pricing scheme announced by the NFL O. The price scheme above is possibly the good price to close the gap between ticketed price and the true market price. O. The new pricing scheme mentioned above for 2020 would far exceed the true market price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Every year in September, the NFL (National Football League) announces official prices of their next Super bowl tickets. The official ticket prices for 2022 Super bowl ticket in the NFL official websites started from $6,800 per person and it was up to over $81,800 per person depending on the location of the seats from the field. However, about three fourth of all tickets were already distributed to the NFL teams. The other one fourth are distributed to the media, NFL partners and sponsors. As a result, a small fraction of a total of about 70,000 tickets were sold in the secondary market. Those tickets were available to buy and sell in the official NFL online sites and other ticket brokers. Given the limited supply of tickets available to the NFL fans to purchase, the actual prices are dominated by the wide fluctuation of demand caused by many factors such as the venue of the game, the winning teams for the championship match, the packages of tickets offered by the brokers, and the weather forecast right before the game day. The record shows that the actual selling prices can go many times higher than the above-mentioned range of prices posted in the NFL official online sites. Based on the information above and its relevance to the application of theories of demand and supply behavior in Economics, choose the correct answer out of the following 4 statements. O. None of these three statements are correct answers, need more information about the market. O. The market equilibrium price of all tickets in Miami, FL area (the venue of 2020 Super Bowl Game) will be still much higher than the new pricing scheme announced by the NFL O. The price scheme above is possibly the good price to close the gap between ticketed price and the true market price. O. The new pricing scheme mentioned above for 2020 would far exceed the true market price

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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