Question

A soccer stadium with 62,000 seats has experienced average attendances of 27,000 at $17 and 32,000 at $13. Assuming linear attendance, what ticket price would maximize revenue?

Answer 1

The shape of the supply curve for tickets to football games at a certain stadium with 70,000 seats is upward-sloping.

Step-by-step explanation:

The shape of the supply curve for tickets to football games at a certain stadium with 70,000 seats would be upward-sloping.

In general, the supply curve for tickets to a sporting event is upward-sloping because as the ticket price increases, it becomes more profitable for the stadium to supply more seats. As the price of tickets rises, the stadium owners can afford to open up more sections of the stadium or sell tickets for previously empty seats.

Although the band would sell fewer tickets at a higher price, they would generate higher total revenue and profits.