Formula 1 (F1) motor racing strictly controls the number of teams in the sport and the number of races in a season. It also controls television rights for the F1 season. It does this in order to _____.
A) increase price by restricting supply
B) reduce the quantity of motor racing demanded
C) make demand perfectly inelastic
D) create a surplus in the market

Question

Quizplus · Accepted Answer

Formula 1 restricts the number of teams and races, and controls television rights, to increase the price by restricting supply. This scarcity increases demand and allows F1 to charge higher prices for broadcasting rights, tickets, and merchandise.

Formula 1 (F1) Motor Racing Strictly Controls the Number of Teams