The Milwaukee Brewers are playing their archrival Chicago Cubs. Bleacher tickets for the game were sold out and many fans would have attend if tickets were availiable.
1. Draw the demand and supply lines for bleacher tickets for this game. Label the equilibruim bleacher price and the current bleacher price. Label the equilibrium price and state whether the actual price is above or below equilibrium.
2. Did the Brewers use the optimum pricing policy? Explain. If not,explain.
3. What is the main rationing mechanism to allocate tickets for the game?
1. To draw the demand and supply lines for bleacher tickets for the game between the Milwaukee Brewers and the Chicago Cubs, we need to understand the concept of equilibrium price. Equilibrium price occurs when the quantity demanded of a good or service equals the quantity supplied. In this case, the equilibrium price of bleacher tickets for the game is the price at which the number of tickets fans are willing to buy matches the number of tickets available.
Since the demand for the game is high and bleacher tickets have sold out, we can assume that the actual price is above the equilibrium price. The demand line will be higher and steeper because fans are willing to pay more to attend the game. The supply line will be horizontal, indicating that the number of bleacher tickets available remains constant despite the high demand. The equilibrium bleacher price is the point where the demand and supply lines intersect.
2. Optimum pricing policy refers to a pricing strategy that maximizes revenue and accounts for demand fluctuations. In this case, it seems that the Brewers did not use the optimum pricing policy. The fact that bleacher tickets for the game were sold out indicates that the price was below what fans were willing to pay. By setting the price too low, the Brewers likely missed out on potential revenue and also disappointed many fans who were unable to attend the game due to ticket unavailability.
3. The main rationing mechanism to allocate tickets for the game in this scenario would be the "first-come, first-served" principle. Since the demand exceeds supply, fans who were able to purchase tickets early would be the ones who secured entry. This principle implies that the tickets are allocated based on the order in which fans made their purchase, with early buyers securing their seats before the tickets are sold out.