1. Sport Finance & Economics January 21, 2015

2. Effect of Technology on Price
Example
Textbook prices 1990 vs 2015
Secondary market
Improved information in 2015  lower prices
Buyback market
1990 person selling the book was essentially a price taker
2015 person selling the book is an independent price setter (see half.com)

3. Inflation Stagflation
Average price of college attendance ↑ by 8% per year regardless of inflation rate
Stagflation
High inflation + high unemployment + (no economic growth or economic contraction)
Implications for the purchase of non-necessary goods

4. Demand Pull Demand ↑↑↑ Supply is constant
Ex. baseball playoff tickets vs. regular season tickets
Perceived scarcity
Effect on price?

5. Elasticity How a change in one variable results in a change in another
How responsive?
“If I lower the price of tickets, how many more will I sell?”
“If replica jerseys are scarce, will people want to buy them? If so, how much will they pay?”

9. Supply Shift – Elastic Demand

10. Supply Shift – Inelastic Demand