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…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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