Article: http://money.cnn.com/2010/09/24/news/economy/NFL_ticket_prices/index.htm
Summary:
This article explains the changing prices of NFL tickets, the average NFL ticket increasing 4.5% this year to $76.47. However, 15 out of 32 teams have same or lower prices. So how is the average increasing? 9 out of 32 teams have above average ticket prices. The New York Jets having a 38.1% boost because the team plays in a $1.6 billion new stadium. How the team performs also affects the price of the tickets, seeing as tickets to New Orleans Saints games have increased 264%. The Tampa Bay Buccaneers having to offer discounts on tickets in order to sell seats.
Summary:
This article explains the changing prices of NFL tickets, the average NFL ticket increasing 4.5% this year to $76.47. However, 15 out of 32 teams have same or lower prices. So how is the average increasing? 9 out of 32 teams have above average ticket prices. The New York Jets having a 38.1% boost because the team plays in a $1.6 billion new stadium. How the team performs also affects the price of the tickets, seeing as tickets to New Orleans Saints games have increased 264%. The Tampa Bay Buccaneers having to offer discounts on tickets in order to sell seats.
Connections:
This article provides a good example to many economic factors. The increase in New York Jet prices may have to do with the building of the new stadium; this is a production cost as the tickets increased prices help pay for the new stadium. Tampa Bay tickets have to be discounted in order to sell more seats, this is an example in decrease of demand; demand goes down and so do the prices. Tickets to the New Orleans Saints increased in price due to their Super Bowl victory. This is an example of increase in demand; more people want the tickets so an increase in prize maximizes profits.
Reflections:
This article perfectly demonstrates supply and demand; it has improved my understanding of Chapter 2, supply and demand, showing use of many factors. It has taught me that the price of a ticket can drastically change right after the end of a single game, the Super Bowl. Some NFL tickets are very inelastic as many fans are willing to pay $400+ to see their favourite team. However other tickets aren’t that elastic seeing that some teams have to decrease prices in order to sell enough seats. I now realize that economics is really a sensitive subject, reacting to every factor and changing within a few moments.
- Michael H
- Michael H
I agree with you that, this article concerns about the increase in demand for NFL tickets. However, I disagree with the factor that you mentioned (production costs) that affects the demand for NFL tickets. I think, the factors that affect the demand for NFL tickets are personal income and tastes and preferences. If NFL tickets keep rising, the tickets will become a huge portion of one's income, and probably won't have enough to afford the ticket. If a person had a huge income, and the ticket makes up a small portion of the person's salary, it won't affect the demand for tickets. I also believe tastes and preferences is also another factor that is applied in this situation because many people love to watch sports games live such as football. So, if the price increases, it won't affect their passion for football and therefore some consumers will still buy football tickets. However there is a factor that might decrease the demand for football tickets. There are many substitute services for watching football games. People can watch football games on T.V., online on computers, or even listen to the highlights on the radios. So, overall, I generally believe football tickets are an elastic good because, there are many alternatives to watch football. Football tickets are more of a luxury and there are many close substitutes to watch football games. An increase in price of football tickets may make up a huge percentage of budget spent on the service. However, some people have a huge passion for football that they will still go watch football games live even though it is more expensive. It all depends on the character of a person and either if they are huge football fans or not.
ReplyDeleteBy: Joshua Thang