1. Economics & Sports & Entertainment Marketing

2. What is economics?
Study of the choices and decisions that affect making, distributing and using goods and services.

3. Basic Economic Problem:
Wants and needs are unlimited
Limited Resources (natural resources, capital, and equipment. land)

4. Unlimited Wants & needs
+ Limited Resources
____________________ Scarcity

5. Example
Unlimited Wants/Needs
Limited Resources
What is scarce?
Lower Arena Basketball Tickets
Thousands of fans wants lower arena tickets
# of lower arena seats
Tickets to games
Six Flags
As a customer you want to ride every ride in the park
Time – On a Saturday, you may wait 2+ hours for a ride
Time
Cardinal Kroger Shopping
You want 3 cookies, coke and Munchies
You only have $1.00
Money
Fantasy Football Draft
You wanted to draft many high salaried players
Only $65,000,000

6. BECAUSE OF SCARCITY, PEOPLE MUST MAKE CHOICES!!!
Consumers, Businesses & Sports Franchises make choices based on VALUE.
Value – using resources toward the greatest satisfaction of wants and needs.

7. Demand:
The relationship between how much a consumer purchases of a product and the price of the product.
Law of Demand: When the price of a product is increased, less will be demanded.

8. Supply: Relationship between the quantity of a product that producers provide and the price of the product.
Law of Supply: When the price of a product is increased, more will be produced.