Question

Explain in words or use a graph to show how the demand/supply changes for NBA tickets.

(a) The price of beer in the stadium has increased.

(b) The Commissioner has decided to increase the regular season by 5 games.

(c) NBA players have decided to go on strike.

(d) The local team just traded for one of the top players in the league.

(e) The Superbowl was last weekend.

Answer 1

( a )

If the price of beer in the stadium has increased, there may be a fall in demand for NBA tickets as it would mean that those people who earlier used to come along with their friends, loved ones etc. to have a glass of beer while enjoying the NBA games may opt to stay at their homes or they may choose to enjoy the game on TV. With the fall in demand of the NBA tickets its' demand curve will shift to the left.

( b )

As the commissioner decides to increase the regular season by 5 games, it would mean more games being played than before and thus there will be increase in the supply of NBA tickets. In general, as the supply of an item increases, its demand falls down and therefore in this case the demand curve for the NBA tickets may shift to the left.

( c )

NBA players have decided to go on strike which means there will not be NBA games. It will result in fall in the demand for NBA tickets drastically, in fact the demand may fall down to zero.

( d )

With a top player coming in the local time, popularity of the game may increase. It would lead to increase in demand for NBA tickets as more people will flock to the stadium to watch the games.

( e )

As the demand for NBA tickets peaks during Superbowl, there may be a fall in demand for the tickets immediately after the Superbowl weekend.