The hottest ticket in Canadian sport – supply and demand
Sunday, February 28, 2010
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The Olympic ice hockey final between the USA and Canada is the equivalent of England versus Germany in the football World Cup final. As you would expect tickets are like gold dust with prices rising to ridiculous levels on websites. So the question for economists is why prices become so excessive. The main reason is supply is perfectly inelastic as the stadium has a capacity of only 18,000. This means the increase in demand caused by a USA/Canada final led to a big increase in price. Students could represent this situation using a supply and demand diagram.
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