Determining Ticket Prices Essay Example | Topics and Well Written Essays - 750 words

Determining Ticket Prices - Essay Example prediction made before the game between the Seattle Seahawks and the Denver Broncos in Northeast of super bowl influenced the macroeconomic condition in New York. This paper attempts to analysis, economic implications of favourable weather condition during this match. According to Seat Greek, search engine, an average resale price of a ticket increased because of the prediction made that there was to be a favourable weather condition on Sunday, the D-day. Before the match kick-off, the value of one ticket increased by ten times over the original cost. The price increased because of increasing demand for tickets thereby validating the law of supply. However, the increase in the price of tickets had a trickle down effect in the economy. Consumers increase their spending on tickets due to high prices. It reduced the amount of income consumer devotes for other expenditure link directly with growth of gross domestic product (GDP). These components include investments, consumption, and export. To this end, this price changes caused a slight decline in gross domestic product of New York (Song et.al, 2008, p. 88). However, the change in gross domestic was small and unnoticed since the price increase resulted to increase government spending. On the other hand, ticket prices increased the amount of government revenue through a tax on the profits. The government reacts to changes in the economy by stimulating the economy through government spending. The government increased its spending to stabilize economic activities and to maintain inflation rate. The government undertook infrastructural development and other programs to increase money supply thereby lowering prices to a normal level. In retrospect, favourable weather condition increased demand for restaurant rooms and food. Hospitality industry experienced a major boost as customers increased, thereby mounting hotels and restaurant spending. In this perspective, investment in hospitality industry increased due to