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Suppose university officials felt that football tickets at your school are too expensive and decide to limit the price the athletic department can charge for a ticket to a single game. What will result from this decision if resale is not permitted and this rule is enforceable?

1) An abundance of cheap tickets will be available online.
2) The football team will offer more tickets to the game.
3) A surplus of tickets will exist.
4) The quality of facilities will decrease.

User Linp
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Final answer:

Imposing a price cap on university football tickets can lead to excess demand for the limited tickets available and potentially worsen the quality of the facilities if revenue from ticket sales is significantly reduced. Increasing the number of tickets is unlikely due to stadium capacity constraints.

Step-by-step explanation:

If university officials decide to impose a price limit on football tickets, several outcomes could result from this decision, assuming resale is not allowed and the rule is enforceable. Firstly, reducing ticket prices could potentially lead to an increase in demand, but since the supply of tickets is typically limited by the stadium's capacity, not all those who wish to purchase at the lower price may be able to do so. This can create a surplus of ticket demand.

Secondly, because the athletic department is now receiving less revenue per ticket, they might not have the resources to maintain or improve the quality of facilities, meaning the quality could decline. Increasing the number of tickets offered is usually not feasible due to seating capacity limitations, so the second option is unlikely. Therefore, the most likely outcomes are a surplus of demand for tickets, which could mean long lines or lotteries for tickets, and potentially a decrease in the quality of facilities if the athletic department relies significantly on ticket sales revenue. Online availability of cheap tickets is less relevant, as it depends on the university's distribution strategy.

User Alex Kendrick
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