(a) Argument for ticket prices kept too high. (b) Ticket price of $50 too low. (c) Recommendation for band members to bring down the ticket prices. (d) The next album of the band was not successful. (e) The effect on demand and price of ticket on announcement of band’s last tour. Concept Introduction Demand: The demand of a product or service in the market is derived by the willingness to purchase and ability of the consumers to pay for the purchase. Supply: The supply of a product or service means making available a specific product or service to the consumers at a specific price. Equilibrium Price : The equilibrium price is the market price at which the quantity demanded by the consumers equals the quantity supplied by the producers. Equilibrium Quantity : The equilibrium quantity is that quantity where the demand and supply of a product or service is equal.

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Chapter 3, Problem 11P

To determine

(a) Argument for ticket prices kept too high.
(b) Ticket price of $50 too low.
(c) Recommendation for band members to bring down the ticket prices.
(d) The next album of the band was not successful.
(e) The effect on demand and price of ticket on announcement of band’s last tour.

Concept Introduction

Demand: The demand of a product or service in the market is derived by the willingness to purchase and ability of the consumers to pay for the purchase.

Supply: The supply of a product or service means making available a specific product or service to the consumers at a specific price.

Equilibrium Price: The equilibrium price is the market price at which the quantity demanded by the consumers equals the quantity supplied by the producers.

Equilibrium Quantity: The equilibrium quantity is that quantity where the demand and supply of a product or service is equal.

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