Food prices in sports stadiums are notoriously high because there is a limit on the number of vendors that can operate in the stadium, which is a barrier to entry. In 2017, the Atlanta Falcons, an American football team, lowered the barriers to entry by allowing more food vendors into their stadium. If the market for food in the stadium follows our perfect market assumptions, what might you expect happened after this change? Do not worry about the underlying facts of each statement, only whether it makes economic sense given our model. (Select one or more.) (a) The price of food in the stadium decreased because of an increase in supply. (b) The price of food in the stadium decreased because of an increase in demand. (c) The quantity of food sold decreased because of a movement of the supply curve. (d) The quantity of food sold increased because of a movement along the demand curve. (e) Profit per vendor decreased because of lower food prices. (f) Profit per vendor increased because of greater demand. (g) Consumer surplus in the stadium food market increased because of lower food prices. (h) Consumer surplus in the stadium food market decreased because of greater competition. (i) Ticket sales increased because tickets and food are complements, and the food price fell. (j) Ticket sales increased because tickets and food are substitutes, and the food price fell.
Food prices in sports stadiums are notoriously high because there is a limit on the number
of vendors that can operate in the stadium, which is a barrier to entry. In 2017, the Atlanta
Falcons, an American football team, lowered the barriers to entry by allowing more food
vendors into their stadium. If the market for food in the stadium follows our perfect market
assumptions, what might you expect happened after this change? Do not worry about the
underlying facts of each statement, only whether it makes economic sense given our model.
(Select one or more.)
(a) The
(b) The price of food in the stadium decreased because of an increase in demand.
(c) The quantity of food sold decreased because of a movement of the supply curve.
(d) The quantity of food sold increased because of a movement along the demand curve.
(e) Profit per vendor decreased because of lower food prices.
(f) Profit per vendor increased because of greater demand.
(g)
(h) Consumer surplus in the stadium food market decreased because of greater competition.
(i) Ticket sales increased because tickets and food are complements, and the food price fell.
(j) Ticket sales increased because tickets and food are substitutes, and the food price fell.
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