Question

Consider the demand curve for tickets to Clemson University football games. Indicate the effects on this curve of each of the following changes, ceteris paribus.

a. Illustrate and explain each event on a seperate graph.

b. High quality opponents (e.g., University Miami & Virginia Tech) replace lesser quality opponents on the home schedule.

c. Better recruiting classes improve the talent of the Clemson Team.

d. The season goes badly and the team drops out of contention for a major bowl game.

e. The Carolina Panthers decide to relocate to Clemson, South Carolina and have agreed to sell tickets at a considerable discount to the residents of Clemson.

Answer 1

b)

Demand curve will shift to the right (increase). The equilibrium price and quantity of tickets will increase.

c) Demand curve will shift to the right (increase) as the quality of the home team increases. The equilibrium price and quantity of tickets will increase.

d) Demand curve will shift to the left as the season goes badly. The equilibrium price and quantity will fall.

e) Demand curve will shift to the left as the price of the tickets of the rival team ( a substitute ) goes down. When the price of a substitute good falls, demand for the concerned good will fall.