Atlanta Falcon’s Mercedes-Benz Stadium will offer $2 hot dog and $5 beer. Management figured that fans will eat more if the prices are lower. Ahh…how I love classic economics.

Fans have been eating out before the game to not be gouged by the astronomic stadium food prices. They have effectively substituted stadium food for outside food. However, by lowering stadium food prices, Falcon’s management will reverse the substitution effect. More stadium food consumption because it is cheaper.

I think the plan will be profitable as long as fans are not so habituated with eating outside food and do not deem stadium food to be a total rip off. As long as the food quality is decent, I believe that Falcon’s management will increase profits. Management can further increase its profits by selling some high priced foods for less price sensitive fans.

Look forward to seeing the magic of substitution effect! Econ 101!