Question

Elaborate with examples how the 2022 Asian Games Organising Committee for the 19 th Asian Games Hangzhou 2022 (XIX Asiad), which is scheduled to be held in Hangzhou, Zhejiang, China from 10 to 25 September 2022, can use the determinants of demand factors in setting the price of tickets for this sporting event.

Answer 1

Determinants of demand for a product are taste and preference of consumers, substitutes of the product, and also most importantly income of the consumer.

Likewise when the Asian Games take place in Hangzhou, Zhejiang, China in 2022, the price setting authorities and organizers can use demand factors in setting the price of tickets for various sporting events.

The determinants of demand factors for sporting events are interests or preferences of the people in watching different games, the prices of the tickets, participation of famous athletes and personalities in the games, and also income of the people.

For example, if a particular game such as Badminton is more famous among local people, the prices for such games should be set higher, similarly a less famous game's prices should be set lower. The authorities may make different arrangements for rich people such as VIP seats which will help them earn more revenues from tickets.