Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows: Price $4 8 12 16 20 Price 4826986 1. Draw the demand and supply curves. What is unusual about this supply curve? 2. What are the equilibrium price and quantity of tickets? 3. Your college plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedule: $4 12 16 Quantity Demanded 10,000 tickets 8,000 6,000 4,000 2,000 20 Quantity Supplied 8,000 tickets 8,000 8,000 Quantity Demanded 4,000 tickets 3,000 2,000 1,000 0 8,000 8,000 4. 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?
Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows: Price $4 8 12 16 20 Price 4826986 1. Draw the demand and supply curves. What is unusual about this supply curve? 2. What are the equilibrium price and quantity of tickets? 3. Your college plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedule: $4 12 16 Quantity Demanded 10,000 tickets 8,000 6,000 4,000 2,000 20 Quantity Supplied 8,000 tickets 8,000 8,000 Quantity Demanded 4,000 tickets 3,000 2,000 1,000 0 8,000 8,000 4. 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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that the price of basketball tickets at your college
is determined by market forces. Currently, the demand and
supply schedules are as follows:
Price
$4
#82620
12
16
Price
$4
8
Quantity Demanded
10,000 tickets
8,000
6,000
4,000
2,000
1. Draw the demand and supply curves. What is unusual
about this supply curve?
2. What are the equilibrium price and quantity of tickets?
3. Your college plans to increase total enrollment next year
by 5,000 students. The additional students will have the
following demand schedule:
12
16
20
Quantity Supplied
8,000 tickets
8,000
8,000
Quantity Demanded
4,000 tickets
3,000
2,000
1,000
0
8,000
8,000
4. 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?
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