This was used as an AP micro final presentation for the economics of something. We were asked to relate textbook terms to the area we chose

1. Classroom C-4

2. Sunk Costs – Renting out a
Theatre
When a show rents a theatre
to perform in, they sign a
contract and those costs
cannot be recovered

3. Shift In Demand
In 2014, the show Gentleman's Guide to Love and Murder
won the Tony Award for Best Musical. Ticket prices
skyrocketed because everyone wanted to go see that years
best musical

4. Quantity Supplied
There are currently 33
Broadway shows out
that one can go see

5. Dead Weight Loss – Empty Seats
during a performance

6. Inelastic
As of May 27th 2015, Book of
Mormon tickets are priced from
$90 to $299 per ticket
As of May 27th 2015, Wicked
tickets are priced from $92 to $212
per ticket
These shows are more price
inelastic because they have both
won Tony awards for best musical
and are the “hot ticket” shows
currently playing in Manhattan.
People are more willing to pay any
price to see these shows

8. Elastic
Newer shows that have yet to become
completely established are more
elastic.
It Shoulda Been You opened on
March 17th 2015 and tickets are priced
from $69 to $142
Gigi opened on March 19th 2015 and
tickets are priced from $67 to $147
People are not as willing to pay large
amounts to see these shows

9. Fixed/ Variable/ Total Costs
Fixed Cost: Renting the space to perform your show
Variable Cost: A show lessening the amount they pay actors
in the ensemble (smaller parts)
Total Cost: Full Production Costs
Examples:
Book of Mormon: According to the NY times the Total Cost
was 11.4 million
Wicked: According to the NY times the Total Cost was $14
million
Pippin: According to the NY times, the Total Cost was $8.5
million

10. Opportunity Cost
If someone takes a trip to Manhattan with only one night
to see a Broadway show and they choose to see Hairspray
over Kinky Boots, their opportunity cost would be not
seeing Kinky Boots during their time in the city.

11. Shutdown Point
A Show closes on Broadway when it begins losing money.
As attendance declines, they can send blocks of tickets to
the half-price TKTS booth in Times Square, but eventually,
without a little boost from winning a Tony or two or re-
casting the show with a new interest lags and it's becomes
time to put together the National Tour.