The diagram below shows the demand for match tickets by Irish soccer supporters and the supply of tickets in the venues (i.e - Leaving Cert Economics - Question 2 - 2012

On the diagram, label the point where the demand curve intersects the supply curve as P₁ to indicate the equilibrium price.

Label the corresponding quantity on the x-axis at the intersection point as Q₁ to denote the equilibrium quantity.

As the price of tickets increases, the quantity supplied by the sellers tends to increase, as they are willing to offer more tickets at a higher price. Conversely, if the price decreases, the quantity supplied will decrease. This reflects the law of supply, which states that, ceteris paribus, an increase in price results in an increase in quantity supplied.

1. Increase in Income: If the income levels of Irish soccer supporters increase, they may be more willing to spend on leisure activities such as purchasing match tickets, causing an increase in demand.

2. Change in Preferences: If there is a growing popularity and enthusiasm for soccer, more fans may decide to attend matches, thus shifting the demand curve to the right.

The shift in the demand curve to the right leads to a new intersection point with the supply curve, resulting in a higher equilibrium price. This occurs because the quantity demanded exceeds the quantity supplied at the original price, prompting sellers to raise their prices.

Complementary good: Accommodation / Travel Fares. If the demand for match tickets increases, this will likely increase the demand for related goods like accommodation and travel fares, as more attendees will require lodging and transport to the match, further boosting the demand for these services.

Economic advantage: Increased revenue for the government, which can be invested back into public services and infrastructure.

Economic disadvantage: Reduced standard of living for residents who may face higher transportation costs, affecting their disposable income.

Irish trucking and haulage companies may experience increased operational costs due to toll fees. This could lead to higher prices for consumers as companies pass on the added expense, potentially reducing demand for their services if prices rise too significantly.

Introducing toll charges could help to reduce the current budget deficit by providing additional revenue for the government. This influx of funds can be used to improve public services and reduce reliance on other forms of taxation, ultimately contributing to a healthier budget position.