Question

1. Suppose that the price of basketball tickets at your college is determined by market forces.
Currently, the demand and supply schedules are as follows: (8)

Price ($) Quantity Demanded (tickets) Quantity Supplied (tickets)
4 10000 8000
8 8000 8000
12 6000 8000
16 4000 8000
20 2000 8000

(a) Draw the demand and supply curves. What is unusual about this supply curve?
(b) What are the equilibrium price and quantity of tickets?
(c) The college increases total enrolment by 5000 students. The demand schedule of the
additional students is given as follows:

Price ($) Quantity Demanded (tickets)
4 4000
8 3000
12 2000
16 000
20 0

Calculate the new demand schedule for the entire college? What will be the new equilibrium
price and quantity demanded of tickets?

Answer 1

Answer:

Check the net

Explanation:

It is taen from topper