Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply sc
hedules are as follows:Price Quantity Demanded (Qd) Quantity Supplied (Qs)$4 10,000 tickets 8,000 tickets$8 8,000 8,000$12 6,000 8,000$16 4,000 8,000$20 2,000 8,000Required:a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?b. What are the equilibrium price and quantity of tickets?c. The college plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedules: Price Quantity Demand (Qd)$4 4000 tickets$8 3000$12 2000$16 1000 $20 0. Required:d.Now add the old demand schedule and the
demand schedule for the new students to
calculate the new demand schedule for the
entire college. What will be the new
equilibrium price and quantity?
demand schedule for the new students to
calculate the new demand schedule for the
entire college. What will be the new
equilibrium price and quantity?
1 answer:
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