Above is the demand schedule for tickets to a Carnegie Hall performance of the Grateful Dead. Carnegie Hall seats 1,800 people.   What is the equilibrium price and quantity for a concert of the Grateful Dead at Carnegie Hall?   If tickets were sold for $18, what would happen (be specific)?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Above is the demand schedule for tickets to a Carnegie Hall performance of the Grateful Dead. Carnegie Hall seats 1,800 people.

 

What is the equilibrium price and quantity for a concert of the Grateful Dead at Carnegie Hall?

 

If tickets were sold for $18, what would happen (be specific)?

P
QD
($)
16 3,000
18 2,800
20 2,600
22 2,400
24 2,200
26 2,000
28 1,800
30
1,600
Transcribed Image Text:P QD ($) 16 3,000 18 2,800 20 2,600 22 2,400 24 2,200 26 2,000 28 1,800 30 1,600
Expert Solution
Step 1

Carnegie Hall has 1800 seats. 

So, the supply of tickets to a Carnegie Hall performance of the Grateful Dead is 1800. 

Economics homework question answer, step 1, image 1

At equilibrium point, demand = supply

=> QD = QS = 1800

Hence, the equilibrium quantity is 1800

The price corresponding to 1800 is $28

Hence, the equilibrium price is $28

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