The Tohono O'odham tribe wants to build a soccer stadium next to their casino. This would create both positive and negative externalities for the local community and governments. Negative externalities could include increased traffic and noise, while positive externalities could include more jobs and tax revenue. Finding ways to minimize the harm to neighbors, such as addressing traffic issues, would help gain city support for financing the stadium project. Understanding the elasticity of demand for tickets, concessions, and merchandise through price changes would help the tribe maximize revenue.

1. Heading:
Say the TohonoO'odhamtribe wantsto pay forand builda soccerstadiumnexttothe casinoon Los Reales.
1. List all negative andpositiveexternalitiesthatwouldbe created.
2. Which setof externalitiesseemtobe greaterand why?
3. Whyshouldthe cityof Tucson helpfinance the stadium?
4. Solve the problemof the negative externalities,how couldthe tribe still getthe stadiumwhile minimizingharmto
neighborsandgovernments?
8. If the tribe eventuallybuildsthe stadiumandtheirresearchteamnoticesthatforevery10% decrease intickets,they
sell anaddition10% seasontickets,whatdoesthistell usaboutthe elasticityof demandfortickets?
9. Sodasin the stadiumhoweverdecrease insalesby20% for every5 % increase inprice. Whatdoesthat say aboutits
elasticity?
10. Jerseysalesincrease by5%for every10% dropin price,whatdoesthatsay aboutits elasticity?
11. What productswouldthe teammeasure price changesusingcross-price elasticity?
12. Whichelasticitywouldyouuse if the unemploymentrate became lower?
13. Is thisa goodidea? Explainusingeconomicreasoning