Answer to Question #101255 in Microeconomics for komalpreet kaur

Question

During a five year period, the ticket sales of a city’s professional football team have
increased by 30 percent at the same time that average ticket prices have risen by 50
percent. Do these changes imply an upward sloping demand curve? Explain

Answer 1

No, the demand curve is downward sloping. In this case we have the movement of all the curve to the right, but not the movement along the same demand curve. New demand curve reflects the increasing of quantity demanded caused by non-price factors, and may be without price growth the quantity demanded would rise even more.