Chapter 3

Key concepts:

Demand: This is the willingness and ability of consumers to purchase the goods and services. It is relevant to sport economics because if a consumer has a demand for a particular product it implies they are willing to exchange money for the service. An example of this is buying tickets for the Green Bay Packers, because they are so high in demand people are willing to pay large sums of money to purchase a ticket.

Pg. 38 (Eschenfelder, 2007)

Law of Demand: if all things are equal, the lower the price of a commodity, the higher the quantity demanded; and the higher the price, the lower the quantity demanded. This is relevant to economics as if something is inexpensive then more people will want to buy the product or service. A sporting example of this is when jerseys go on sale they sell out much faster.

Pg. 38 (Eschenfelder, 2007)

Market equilibrium: amount that consumers demand and the amount that producer’s supply is in balance. At this point prices remain constant. This is important as it allows the producers to see that they are marketing their product or service at a price that is affordable and consumers are willing to pay that for the particular product. A sporting example is when ticket sales are constant at a certain price that is set and both the consumer and producer are happy at that figure.
Pg. 48-49 (Eschenfelder, 2007)