Cor hiring ha reenville SC a large arena previousiy known as

Cor hiring ha reenville, SC, a large arena previousiy known as the Bi-Lo Center was constricted several years ago Comeo the In Gree SC, a large arena previously known as the Bi-Lo Center was constructeds everal years ago Cp differnt type events such as sports (minor league ice hockey), professional wrestling, concerts, Tuh ssume that you are the promoter of events at the arena. How would you expect the following to i to host differnt ty etc. Assume that y affect demand for events at the arena. Be sure to explain each answer. a. A major event at the Peace Center in downtown Greenville - b. A major football game at Clemson about 30 miles away. c. the closing of BMW, a major employer in the area - Question 6 If the average ticket prices for a Clemson University football game increases by 10% and the number of fans attending decreases by 5%, answer the following questions. a. Is demand for the football games elastic or inelastic? Explairn.

Solution

Answer5A.It will lead to increase in demand because more and more consumers will enter the market.

b. It will also lead ot increase in demand because those who are coming to watch football match would be requiring services of the product.

c. It will lead ot decrease in demand because our consumers lost their jobs and hence their incomes have fallen. With fall in incoe, their demand for our product will decrease.

Answer6A. EDP = percentage in quantity demanded/percentage change in price

= 5/10 = 0.5

EDP<1

b. Total revenue will decrease because if EDp>1, TR increases with decrease in price and vice versa, But in our case, EDP<1 and and hence it will increase with increase in price and vice versa.

c. Yes, because then it wil affect interest of the audience. If interest of audience is adversely affected, demand for match watching will decrease.

Answer7: In the short run demand is relatevely inelastic as it is difficult to find substitutes. but in the long run, it is elastic as one can easily shift to alternatives. Therefore demand did not decrease in short run but started ot decrease if price remained high continuously.