And, yes, some As Mr. Ueberroth and his colleaguet off without a mishap, without
ID: 1166796 • Letter: A
Question
And, yes, some As Mr. Ueberroth and his colleaguet off without a mishap, without a cash commitment from Los Angeles laspa and without a deficit. Attendance was 5.5 million persons, compared with 5. million in Moscow and 3.2 million in Montreal. The committee netted $150 million-ten times what was anticipated. Ticket sales-expected to be $98 mil lion-were $151 million, partly because the Soviet bloc boycott allowed the committee to sell even more tickets. But think how much more money the committce could have made if it had not underpriced the best seats! taxpayerS Robert Welkos, "Relay Sparks Late Surge of Ticket Buying," Los Angeles Times, July 29, 1984 Marita Hernandez and Tim Waters, Ticket Demand Soars as Olympic Fever Rises. "Los Angeles Tames, July 30, 1984 Altendance at Olympics Was a Record 5 5 Mitlion." The Wall Street Journal, August 14, 1984, Keaneth Reich, Olympic Surplus a Huge $150 Million,"Los Angeles Times, September 12, 1984 Suggested Readings A erse, modern, and more mathematical satement regarding the demand curve and the price elasticily of demand is contained in Baumol, Willam J Ecomomic Throry and Operanions Analysis, 4th ed 179-190 Englewood Clifts, N J Prenace-Hall, 1977 The phidosopkic aderings of demand, supply, and market price (and more) are well presented in Chapter Ill of the classic Knight, Frank H. Risk, Uncertainty, and Proft. Boston: Houghton Miflin, 1921 For the classical pioneer work on elasticity of demand and on markets and market equilibrium see Marshall, Alfred. Principles of Economics. 8th ed., Bk. II, Chap. IV, Bk. V,Chaps 1-1I. London Macmilan, 1920 Problens and Questions for Discussion 1 What would be the direction of change in the demand for beef as a result of each of the following changes that occurred in the markets for either chicken or beef in 1985Explanation / Answer
(a)Chicken and beef are substitutes so rising consumption of chicken over a 20-year period would imply decrease in demand for beef.
(b)Declining cost of production for chicken producers reduces the price of chicken as a result chicken becomes relatively cheaper than beef. This leads to decrease in demand of beef.
(c)Declining cost of production for beef producer will reduce price of beef and as a result beef will become relatively cheaper than chicken. This leads to increase in demand of beef.
(d)Bankruptcies of beef producer will lead to decrease in supply of beef which in turn will cause beef price to increase as a result beef will become relatively expensive than chicken. This leads to decrease in demand of beef.
(e)When people get to know chicken and fish are healthier than beef and pork they will demand more chicken and fish. This will lead to decrease in demand for beef.
(f)This development makes it convenient to consume beef as it becomes easy to prepare as a result the demand for beef will increase.