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Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently ...

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Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently ...

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise:

MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte.

Refer to the scenario above. MLB forecasted that parking for MLB games in Charlotte would cost $12, but it now learns that parking will actually cost $16. How will the increased price of parking affect demand for MLB game attendance in Charlotte?

▸ Quantity demanded will decrease.

▸ Demand will increase.

▸ Demand will decrease.

▸ Quantity demanded will increase.

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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