Suppose that the price of basketball tickets at your college is determined by market forces.
Currently, the demand and supply schedules are as follows:
Price Quantity Demand Quantity Supplied
Rs. 4 10,000 8,000
8 8,000 8,000
12 6,000 8,000
16 4,000 8,000
20 2,000 8,000
a) Draw the demand and supply curves. What is unusual about this supply curve? Why
might this true?
b) What are the equilibrium price and quantity of tickets?
c) Your college plan to increase total enrollment next year by 5,000 students. The additional
students will have the following demand schedule:
Price Quantity Demanded
Rs. 4 4,000
8 3,000
12 2,000
16 1,000
20 0
Now add the old demand schedule and the demand schedule for the new students to calculate the
new demand schedule for the entire college. What will be the equilibrium price and quantity
Answers
Answer:
Suppose that the price of basketball tickets at your college is determined by market forces.
Currently, the demand and supply schedules are as follows:
Price Quantity Demand Quantity Supplied
Rs. 4 10,000 8,000
8 8,000 8,000
12 6,000 8,000
16 4,000 8,000
20 2,000 8,000
a) Draw the demand and supply curves. What is unusual about this supply curve? Why
might this true?
b) What are the equilibrium price and quantity of tickets?
c) Your college plan to increase total enrollment next year by 5,000 students. The additional
students will have the following demand schedule:
Price Quantity Demanded
Rs. 4 4,000
8 3,000
12 2,000
16 1,000
20 0
Now add the old demand schedule and the demand schedule for the new students to calculate the
new demand schedule for the entire college. What will be the equilibrium price and quantity