Some baseball parks have a 7th Inning Stretch where beer, hotdogs ...

[ap345]

Some baseball parks have a 7th Inning Stretch where beer, hotdogs and other food items are offered for sale at a lower price.
 
  What economic concept is being used by the baseball park to justify this practice? If it is successful at selling more food and drink with this practice why don't they lower prices at the beginning of the game?

Question 2

The recession of 2007-2009 began in ________, with the end of the economic expansion that had begun in ________.
 
  A) July 2007; August 2006 B) January 2007; April 1984
  C) December 2007; November 2001 D) March 2007; March 1995

[macagn]

Answer to Question 1

The economic concept is the law of diminishing marginal utility. By the 7th inning most of the patrons have already had a bite to eat and something to drink. As they become close to satiated they are deriving less and less marginal utility. Therefore, their willingness to pay to consume more of these items falls.

Answer to Question 2

C

[ap345]

Correct answers!

[macagn]

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