The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?
A) Football games must be more expensive to produce than baseball games.
B) The demand for baseball games must be more elastic than the demand for football games.
C) The supply of baseball games must be less elastic than the supply of football games.
D) The demand for each baseball game must be lower than the demand for each football game.

Question

Quizplus · Accepted Answer

The higher equilibrium price for football tickets ($30) compared to baseball tickets ($20) suggests that the demand for football games is higher than for baseball games, assuming the number of seats and other conditions remain constant. This does not necessarily imply differences in production costs or elasticity of supply or demand between the two sports.

The Number of Seats Available in a Stadium Is Fixed