When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for sckets to a sold-out venue that holds 20.000 people Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 20000 100 40,000 20000 150 35,000 20000 200 30,000 20000 250 25,000 20000 300 20,000 20000 350 15, D00 20000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50 The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be 5 300 per ticket. The quantity of tickets demanded at the face-value price is 45,000 tickets. For this example, a shortage of tickets exists at the face-value price
When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for sckets to a sold-out venue that holds 20.000 people Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 20000 100 40,000 20000 150 35,000 20000 200 30,000 20000 250 25,000 20000 300 20,000 20000 350 15, D00 20000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50 The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be 5 300 per ticket. The quantity of tickets demanded at the face-value price is 45,000 tickets. For this example, a shortage of tickets exists at the face-value price
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds
20,000 people
Price per
Ticket
Quantity of Tickets
Demanded
Quantity of Tickets
Supplied
350
45,000
20000
100
40,000
20000
150
35,000
20000
200
30,000
20000
250
25,000
20000
300
20,000
20000
350
15, D00
20000
The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50
The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be 5 300 per ticket.
The quantity of tickets demanded at the face-value price is 45,000 tickets.
For this example, a shortage of tickets exists at the face-value price.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education