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

Quizplus · Accepted Answer

The Answer is The economic concept is the law of diminishing marginal utility. By the 7 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.

Some Baseball Parks Have a "7th Inning Stretch" Where Beer