Question
6) In addition to basketball games, there is also the possibility of attending ice hockey games, for which tickets are $8.00. Assuming a cross-price elasticity (percentage change in demand for basketball tickets per percentage change in hockey ticket prices) of +1.5, what will happen to attendance at basketball games if hockey tickets rise to $10.00 per ticket? By how much will there be the rise/fall in attendance at basketball games? Are hockey games a substitute for basketball games or a complement? Why? (See Chap 3, p. 84)
Question image 1