Author Question: The face value of a ticket to the Super Bowl was approximately 1,200 in 2011 . The game is very ... (Read 48 times)

stevenposner · **on:** Jun 30, 2018

The face value of a ticket to the Super Bowl was approximately 1,200 in 2011 . The game is very popular and there are a number of fans who are not able to get tickets to this game. At the same time, many fans claim that prices are too high and that the NFL should lower the face value of the ticket prices. Would a decrease in ticket prices move the market towards equilibrium? Would it eliminate the shortage of tickets? Why or why not?

Question 2

Fiscal policy is the use of government purchases and taxes to alter RGDP and the price level.
a. True
b. False
Indicate whether the statement is true or false

jaygar71 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Lowering the ticket prices would not move the market towards equilibrium. The fact that there is a greater quantity demanded than quantity supplied indicates that the face value is currently below the equilibrium price. Lowering the face value would cause a more severe shortage as more consumers would want to purchase tickets at the lower price, increasing the quantity demanded. At the same time the quantity supplied would likely remain the same given the size of the stadium.

Answer to Question 2

True