4. 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 new equilibrium price and quantity?

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Chapter4: Markets In Action
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NOTE: ANSWER NO. 4 ONLY, LAST SUBPART.
3. Your college plans to increase total enrollment next fear by 5,000 students. The
additional students will have the following demand schedule:
New demand and supply schedule -
Prices Demand Supply
14000
8000
11000
8000
8000
8000
5000
8000
2000
8000
4
8
12
Price
$4
8
12
16
20
16
20
Equilibrium Price would be = 8000
& Corresponding quantity = 12
Quantity Demanded
4,000 tickets
3,000
2,000
1,000
0
4. 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 new
equilibrium price and quantity?
Transcribed Image Text:3. Your college plans to increase total enrollment next fear by 5,000 students. The additional students will have the following demand schedule: New demand and supply schedule - Prices Demand Supply 14000 8000 11000 8000 8000 8000 5000 8000 2000 8000 4 8 12 Price $4 8 12 16 20 16 20 Equilibrium Price would be = 8000 & Corresponding quantity = 12 Quantity Demanded 4,000 tickets 3,000 2,000 1,000 0 4. 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 new equilibrium price and quantity?
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
$4
8
12
16
20
25
20
1. Draw the demand and supply curves. What is unusual about this supply curve?
15
10
5
0
Quantity Demanded
10,000 tickets
8,000
6,000
4,000
2,000
0
2000
4000
Quantity Supplied
8,000 tickets
8,000
8,000
6000
8,000
8,000
8000
-Demand Sheet1!$I$8-Supply
10000
12000
Strange thing about supply curve is that its horizontal in nature which implies that
there is no change in supplied amount with prices.
2. What are the equilibrium price and quantity of tickets?
Equilibrium level is achieved where demand & supply curve intersect.
Therefore, Equilibrium Price = 8
Equilibrium Quantity = 8000
Transcribed Image Text: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 $4 8 12 16 20 25 20 1. Draw the demand and supply curves. What is unusual about this supply curve? 15 10 5 0 Quantity Demanded 10,000 tickets 8,000 6,000 4,000 2,000 0 2000 4000 Quantity Supplied 8,000 tickets 8,000 8,000 6000 8,000 8,000 8000 -Demand Sheet1!$I$8-Supply 10000 12000 Strange thing about supply curve is that its horizontal in nature which implies that there is no change in supplied amount with prices. 2. What are the equilibrium price and quantity of tickets? Equilibrium level is achieved where demand & supply curve intersect. Therefore, Equilibrium Price = 8 Equilibrium Quantity = 8000
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