Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise:

MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte.
-Refer to the scenario above.Household income is expected to grow by 5.5 percent per year in Charlotte.If MLB game attendance is a normal good,income growth will cause a(n)________.

Question

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise:
  
MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte.
-Refer to the scenario above.Household income is expected to grow by 5.5 percent per year in Charlotte.If MLB game attendance is a normal good,income growth will cause a(n)________.

Quizplus · Accepted Answer

Since MLB game attendance is a normal good, an increase in household income will cause an increase in demand for attending MLB games in Charlotte. Therefore, the correct answer is an increase in demand, which corresponds to choice C.

Scenario: Suppose Major League Baseball (MLB) Is Considering Expansion to a U.S