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 holds20,000 peoplePrice perTicketQuantity of TicketsDemandedQuantity of TicketsSupplied35045,0002000010040,0002000015035,0002000020030,0002000025025,0002000030020,0002000035015, D0020000The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50The 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.

In the above example, Face value of ticket is $ 50. Max. supply is 20000 tickets. for one ticket of…

Answered: When excess demand exists for tickets…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements is true? a) If the PED for a product is less than zero, the demand for the product is said to be inelasticb) If the PED for a product is greater than zero, the demand for the product is said to be elasticc) The flatter the demand curve the more inelastic the demand for the productd) If the product is a necessity, then the demand tends to be more inelastic The Consumer Surplus is a) the difference between what a consumer wishes to buy and what he can afford to buyb) the difference between what the consumer plans to buy and what he actually buysc) the difference between what the consumers is willing to pay for a product and what he paysd) the difference between what the consumer is able to pay and what he actually pays
Supply curves tend to be more ______ the greater the time period facing the producer. A) Price -in elastic B) price- elastic C) steeply sloped D) infkexi
Calculating the price elasticity of supply Andrew is a retired teacher who lives in San Diego and does some consulting work for extra cash. At a wage of $25 per hour, he is willing to work 6 hours per week. At $35 per hour, he is willing to work 16 hours per week. Using the midpoint method, the elasticity of Andrew’s labor supply between the wages of $25 and $35 per hour is approximately , which means that Andrew’s supply of labor over this wage range is .
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Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game Price per Ticket Quantity Demanded $13 1,000 11 2,000 9 3,000 7 4,000 5 5,000 3 6,000 varies inversely with ticket prices. varies directly with ticket prices. is perfectly inelastic. is perfectly elastic.
a demand function for a good is q=56.6-0.25p-0.4sp+0.6n Where q is quantity demand per week, p is the price per unit m is the average weekly income, ps is the price of a competing good and n is the population in millions. Given values are p=65, m=350, ps=60 and n= 24 1. Calculate the price elasticity of demand 2. Find out what would happen to(a) if n rose to 26 3.explain why this is inferior good
Suppose that an employee at a coffee shop is willing to work 30 hours per week when she is paid $12.00 per hour. When she is offered a raise to $14.00 per hour, she is willing to work 40 hours per week. Her price elasticity of supply is (Note: use the midpoint method and give your answer to two decimal places.)
Dominos Pizza is trying to attract pizza delivery drivers away from Pizza Hut by offering them hourly wages above the current market wage (assumed to be $8 per hour). If the correct supply price elasticity for delivery drivers is 3.0 and Dominos wants to increase its delivery personnel by 15 percent, then they must increase their hourly wage from $8/hour to: $8.40/hour $8.80/hour $9.00/hour $9.40/hour
Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity of demand for complements is negative.
Demand and Supply Schedules for Papaya Price $ Quantity demanded Quantity Supplied 4 36,000 4,000 8 32,000 8,000 12 28,000 12,000 16 24,000 16,000 20 20,000 20,000 24 16,000 24,000 28 12,000 28,000 32 8,000 32,000 36 4,000 36,000 Determine whether the demand for mangoes is elastic, inelastic or unit elastic. Explain your answer.
Susan is a volunteer fire fighter living in Detroit who teaches clarinet lessons to supplement their normal income. At an hourly wage rate of $15, they are willing to teach 5 hours per week. Upping the wage to $25 per hour, they are willing to teach 14 hours per week. Using the midpoint method, the elasticity of Susan's labor supply between the wages of $15 and $25 per hour is approximately means that Susan's supply of labor over this wage range is , which

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