Suppose that the price of basketball tickets at yourcollege is determined by market forces. Currently, thedemand and supply schedules are as follows:Price Quantity Demanded Quantity Supplied$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 8,000a. Draw the demand and supply curves. What isunusual about this supply curve? Why might thisbe true?b. What are the equilibrium price and quantity oftickets?c. Your college plans to increase total enrollmentnext year by 5,000 students. The additional students will have the following demand schedule:Price Quantity Demanded$4 4,000 tickets 8 3,000 12 2,000 16 1,000 20 0Now add the old demand schedule and thedemand schedule for the new students tocalculate the new demand schedule for theentire college. What will be the newequilibrium price and quantity?
Suppose that the
college is determined by market forces. Currently, the
Price Quantity Demanded Quantity Supplied
$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 8,000
a. Draw the demand and supply curves. What is
unusual about this supply curve? Why might this
be true?
b. What are the
tickets?
c. Your college plans to increase total enrollment
next year by 5,000 students. The additional students will have the following demand schedule:
Price Quantity Demanded
$4 4,000 tickets
8 3,000
12 2,000
16 1,000
20 0
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?
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
