The market for tickets to this year’s football games consists of two groups of consumers. Let x1denote the demand for tickets by fans of one of the visiting teams, and let x2 denote the demand for tickets by home fans who enjoy the spectacle. Let the price of the ticket be denoted by px, and suppose that everyone who purchases a ticket pays the same price. The demand functions of the two consumer groups has been determined as follows. There are 15,000 seats available in the stadium (thus X=15). x1= 12 −px/2 x2= 6− px/4 (a) What is the market demand function for football tickets, as a function of px? (Remember that demand cannot be negative for either consumer group.) (b) If the school was required to sell tickets to visitors at the same price as home team Students, what would the price for tickets be? (c) Suppose that, at the ticket price chosen by the university, the price-elasticity of demand for consumers in group 1 is −1/2. What is the price-elasticity of demand for consumers in group 2?
The market for tickets to this year’s football games consists of two groups of consumers. Let x1denote the
x1= 12 −px/2
x2= 6− px/4
(a) What is the
(b) If the school was required to sell tickets to visitors at the same price as home team Students, what would the price for tickets be?
(c) Suppose that, at the ticket price chosen by the university, the price-
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
