Question

A company in Irvine, California, is interested in buying season tickets to the local baseball team. Tickets for scheduled games are sold individually for $12 each, but season tickets are only $4 each. The reason why the local baseball team has to charge less for season tickets can be explained by

a. the real-income effect.

b. the consumer optimum.

c. marginal utility.

d. the substitution effect.

e. diminishing marginal utility.

Answer

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