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10-09-2007, 03:13 PM
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Originally Posted by sticknrink View Post
In Toronto, Montreal, even Vancouver, demand is highly or perfectly inelastic and not a curve.

Those cities could pack an arena of 30k seats easily. Even without elasticity, remember the definition of demand.
I think it's fair to say some cities at the moment have relatively inelastic demand towards hockey tickets (e.g. Montreal, Toronto, Vancouver, New York City). However, there are so many variables that go into determining supply and demand of sporting tickets that it would be almost impossible to control the "ceteris paribis" assumption.

In the end there are two major factors in price-determination.

1.) Cost of supply
2.) Demand

With more seats, cost of supply goes up, thus ticket prices go up.

With more seats, tickets become more available, thus the value of those tickets decrease and ticket prices decrease.

The key is determining which factor is stronger.

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