RIO DE JANEIRO, BRAZIL - If you know anything about economics and the law of supply and demand, here`s some good news: this is a pretty good time to buy tickets to the summer Olympics in Rio De Janeiro.
Demand is way, way, down. In fact, with less than four months to go before the torch is lit, less than half the tickets have been sold. There are several theories as to why.
Brazil is in the midst of political upheaval and massive protests. Lawmakers are even considering a request to impeach their first female president, Dilma Rousseff.
The country`s economy sucks right now, too. Brazil is suffering their worst recession in 25 years.
Also, organizers can`t even say for sure whether all the Olympic facilities will be built in time. The budget was cut by $500 million dollars in January.
Fears about high crime rates and terrorism may keep a lot of tourists away, too. Health experts and athletes are concerned about the mosquito-borne Zika virus. They`ve even lobbied to postpone the games, but Brazilian officials nixed that idea.
So, as we conclude today`s lesson, you can see why ticket sales are so low. Now, what can be done about it?
Brazil`s sports minister says the government may purchase tickets to give away to public schools.
In economics, that`s known as the “Trickle Down Theory.”