Question

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?

Answer 1

If university officials limit the price of football tickets and prohibit resale, it will result in a decrease in revenue for the athletic department. The department won't be able to charge higher prices based on demand, potentially leading to a loss of revenue and a decrease in the quality of services.

Step-by-step explanation:

If university officials decide to limit the price that the athletic department can charge for a football ticket and resale is not permitted in such a situation, the result would be a decrease in revenue for the athletic department. With a price limit in place, the department would not be able to charge higher prices to match the demand for tickets. This may lead to a decrease in the number of tickets sold and a potential loss in revenue for the department.

Moreover, if the rule is enforceable, it means that the athletic department would not be able to circumvent the price limit and charge higher prices. This could potentially lead to a decrease in the quality of facilities or services provided by the athletic department, as they would have less revenue to work with. Overall, limiting the price of football tickets without allowing resale may have negative implications for the athletic department's revenue and the quality of services offered.

Answer 2

The quality of facilities will decrease.

Step-by-step explanation:

Athletic department is described as the department that is set up in sport colleges or countries, which oversee the works of the coaches and the other staff that take part in the athletic program. This department also see to the facilities available for the athletes.

In this case, when the price of the ticket is limited or reduced to a single game, this means that, the spectators will not be paying for tickets to watch other games, and this will eventually reduce the amount of money the department ought to generate.

When this happens, there won't be enough money to repair the facilities available, and this means that, the condition or quality of the facilities will deteriorate.