Inflating prices
Question 1
In terms of funding for any major sporting event, the funding in most cases is not overestimated. Sponsors have to ensure that at all times, there are additional miscellaneous costs that may accrue in such events. The miscellaneous expenses are meant to cover any damage that may occur because of the competition. It is thus not true that funding is mostly overestimated. The costs, on the other hand, are accorded the same based on the standard measure. Prices tend to inflate and change depending on the area that the sporting event is occurring. It is thus hard for actual figures to match in all countries due to the various standards of living that are associated with the different countries.
The market can thus better solve the problem by ensuring that they set up a feasibility study that will prioritize critical areas, which in this case will include funds intended to be generated and the evaluation of standards of living to determine costs that the event could cover. With an analysis of the two areas, it would be easier for the hosts of the sporting events to accrue profits together with the event organizers.
Question 2
In terms of gasoline prices, change in the quantity of demand is not the only factor that may cause a shift in prices. Other relevant factors that may cause a change in the need for any given product will include a shortage of a product. When the supply is low, then automatically, the price will tend to be higher. Government regulations may also have a general effect on the costs of different commodities. The level of taxation in different countries, to a more significant part, also plays a significant role in the determination of gasoline prices. In conclusion, it is thus evident that the change in demand for gasoline is not the only viable factor towards a shift in gasoline prices.