Market research indicates that you can sell 40 000 tickets


Suppose that you are the manager of a soccer stadium where all the tickets always have to besold at the same price. Two matches are scheduled to be played during the next fortnight, thefirst between Sundowns and Pirates and the second between two First Division sides.

(a) Market research indicates that you can sell 40 000 tickets for the Sundowns-Pirates clash atR10 each, or 30 000 tickets at R20 each. Which option would you choose? What is the priceelasticity of the demand for tickets for this particular game?

(b) Likewise, market research indicates that you can sell 15 000 tickets for the First Divisionfixture at R10 each, or 5 000 tickets at R20 each. Which option

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Econometrics: Market research indicates that you can sell 40 000 tickets
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