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 th 20,000 people. Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 100 40,000 150 35,000 200 30,000 250 25,000 300 20,000 350 15,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be S per ticket. The quantity of tickets demanded at the face-value price is tickets.

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 th 20,000 people. Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 100 40,000 150 35,000 200 30,000 250 25,000 300 20,000 350 15,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be S per ticket. The quantity of tickets demanded at the face-value price is tickets.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 6E

See similar textbooks

Similar questions

Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.
The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8?
The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.Price Quantity DemandedQuantity Supplied$65,0002,00074,0002,00083,0002,00092,0002,000101,0002,000The stadium owners need to find the optimum price for the games.What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8? Characterize the demand and supply for tickets based on the calculated elasticies. What is the optimum price that the stadium owners can set for the tickets? Why is the selected price for the tickets better than other prices given in the table above?
PRICE (Dollars per unit) 350 Z 225 175 Y W 50 Demand 0 10 35 45 70 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. Elastic Inelastic Unit Elastic Region Between W and X Between X and Y О О Between Y and Z О О О True or False: The slope of the demand curve is not equal to the value of the price elasticity of demand. True False
A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commod- ity purchased (a) rises, (b) falls, (c) remains unchanged, or (d) any of the above.
PRICE (Dollars per unit) 210 Z 105 75 W 30 Demand 10 25 35 70 0 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. Region Elastic Inelastic Unit Elastic Between W and X Between Y and Z о О о Between X and Y True or False: The slope of the demand curve is equal to the value of the price elasticity of demand. True False
If the price elasticity of demand for used carspriced between $3,000 and $5,000 is 2 1.2 (usingthe mid-point method), what will be the percentchange in quantity demanded when the price of aused car falls from $5,000 to $3,000?
Suppose that a 10 increase in price results in a 50 percent decrease in quantitydemanded. What does (the absolute value of) own price elasticity of demandequal?
An airline company currently sells a package deal for a $100 return ticket and sells 5000 tickets per week. Because of the high demand, the company raises its fare to $120 per ticket hoping to raise its revenue. If the price elasticity of demand is currently –1.2, what will be the sale of tickets per week and how will this affect total revenue? What conclu- sions do you draw from this exercise?
Suppose that the demand and supply schedules for raisins in South Carolina are as fallows, quantitiesare measured in millions of packs per month. What is the quantity of raisins bought if the price is 50cents ? Price (cents per pack) Quantity demanded20 18030 16040 14050 12060 10070 8080 60 a) 120b) 180c) 100
Q) The quantity demanded or product X has increased by 10% in response to a 15% increase in price of product Y. Calculate the cross elasticity of demand and tell whether the product pair is (a) Voltas AC and Videocon AC or (b) Cars and Petrol and what you suggest for strategies the pricing policy.
The monthly demand and supply schedules for new cars at a large California dealership are shown in the table below. Market for New Cars Price (dollars) $40,000 35.000 30,000 25 000 20,000 Quantity of Cars Demanded 108 200 300 400 500 Quantity of Cars Supplied ase Ltd 350 3250 300 250 If the dealership is currently charging $35,000 for a new car, at the end of the month there will be a shortage of 125 cars. O a surplus of 25 cars. a surplus of 125 cars. a shortage of 100 cars. O neither a surplus nor a shortage; the market will be in equilibrium.