1. Economics of the Sports Industry

2. What Is Economics? Economics:
The study of the choices and decisions that affect making, distributing, and using goods and services

3. Scarcity & Opportunity Cost
Economic problem of people having unlimited wants and needs with limited resources
Opportunity Cost:
The cost of passing up the next best choice when making a decision

4. Opportunity Cost Example
Choosing to watch a football game on TV instead of going to the game.
What is the Opportunity Cost?

5. Trade-offs Trade-offs: Example: sacrifice one thing to obtain another
You only have enough cash to buy a bike or a snowboard, but not both

6. Incentives Incentives:
Any factor (financial or non-financial) that enables or motivates a particular course of action
You must give the consumer incentives because without them, they would have no reason to do what you ask

7. Supply and Demand Supply = Demand Equilibrium: Supply: Demand:
The amount of goods producers are able to make and sell
Demand:
The amount of goods customers are willing and able to buy
Equilibrium:
Supply = Demand

8. Law of Supply & Demand
Supply
Equilibrium
Demand

9. Shortage and Surplus Shortage: Surplus: Supply Low Demand High
Price High
Surplus:
Supply High
Demand Low
Price Low

10. Economic Impact Activity
See Economic Impact PowerPoint