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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. Attendance at games of the minor league baseball franchise in Charlotte, the Charlotte Knights, leads all of Minor League Baseball and has been growing 8 percent per year for the past 5 years. How will baseball's growing popularity in Charlotte affect demand for MLB game attendance in Charlotte?

▸ Cause an increase in quantity demanded

▸ Cause a decrease in quantity demanded

▸ Cause an increase in demand

▸ Case a decrease in demand

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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