Economics & Sports & Entertainment Marketing

What is economics?

• Study of the choices and decisions that affect making, distributing and using goods and services.

Basic Economic Problem:

• Wants and needs are unlimited

• Limited Resources (natural resources, capital, and equipment. land)

Unlimited Wants & needs+ Limited Resources____________________Scarcity

Example Unlimited Wants/Needs Limited Resources What is scarce?

Lower Arena Basketball Tickets

Thousands of fans wants lower arena tickets

# of lower arena seats Tickets to games

Six Flags As a customer you want to ride every ride in the park

Time – On a Saturday, you may wait 2+ hours for a ride

Time

Cardinal Kroger Shopping

You want 3 cookies, coke and Munchies

You only have $1.00 Money

Fantasy Football Draft You wanted to draft many high salaried players

Only $65,000,000 Money

• BECAUSE OF SCARCITY, PEOPLE MUST MAKE CHOICES!!!

• Consumers, Businesses & Sports Franchises make choices based on VALUE.

• Value – using resources toward the greatest

satisfaction of wants and needs.

• Demand: The relationship between how much a consumer purchases of a product and the price of the product.

• Law of Demand: When the price of a product is increased, less will be demanded.

• Supply: Relationship between the quantity of a product that producers provide and the price of the product.

• Law of Supply: When

the price of a product is increased, more will be produced.