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Economics · Grades 9–12 · about 50 minutes

Why Is a Hot Dog $2 in Atlanta? Pricing strategy and demand

Students analyze why some venues cut concession prices, calculate revenue under different demand scenarios and weigh the trade-offs.

Students will: Calculate total revenue; Explain price elasticity of demand; Evaluate a business strategy with evidence.

Free to print and share with your class. Includes an answer key.

Why Is a Hot Dog $2 in Atlanta? Pricing strategy and demand

Name: ______________________

When Mercedes-Benz Stadium opened in Atlanta in 2017, it introduced “Fan First” pricing, with $2 hot dogs, and it still charges $2 in 2026. Most venues charge far more. Is low pricing a smart business decision?

Regular hot dog prices at US major-league venues (USD)
VenueCityPrice
Mercedes-Benz StadiumAtlanta$2.00
Mortgage Matchup CenterPhoenix$2.00
Sutter Health ParkSacramento$7.00
Target FieldMinneapolis$7.19
Lambeau FieldGreen Bay$7.49
Petco ParkSan Diego$8.49
Amerant Bank ArenaSunrise$9.85
  1. A stand sells 1,000 hot dogs at $6. What is the revenue?
  2. After cutting the price to $2, it sells 3,500 hot dogs. What is the revenue now?
  3. In this example, is demand elastic or inelastic? Explain.
  4. Name two benefits besides concession revenue that a team might get from low prices.
  5. Name one risk of very low prices.
  6. Using the table, write a short argument for or against lowering prices at the most expensive venue.

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🔑 Answer key (for teachers)
  1. A stand sells 1,000 hot dogs at $6. What is the revenue?
    1,000 × $6 = $6,000
  2. After cutting the price to $2, it sells 3,500 hot dogs. What is the revenue now?
    3,500 × $2 = $7,000
  3. In this example, is demand elastic or inelastic? Explain.
    Elastic: quantity rose by a larger percentage (250%) than price fell (about 67%), so revenue went up. Using the midpoint method, |E| ≈ (2,500 ÷ 2,250) ÷ (4 ÷ 4) ≈ 1.11, which is greater than 1.
  4. Name two benefits besides concession revenue that a team might get from low prices.
    Possible answers: happier fans and better reviews, more spending on other items, higher attendance and ticket renewals, positive media coverage.
  5. Name one risk of very low prices.
    Possible answers: longer lines, lower profit per item if costs are high, demand that strains staff and supply.
  6. Using the table, write a short argument for or against lowering prices at the most expensive venue.
    Answers vary; strong answers cite the price gap from the table and the elasticity reasoning above.

Teacher notes

  • The revenue scenario is hypothetical; the table prices are real (2024–2026).
  • Extension: discuss costs (food, labor) and the difference between revenue and profit.

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