Suppose that the price of basketball tickets at your collegeis determined by market forces. Currently, the demand andsupply schedules are as follows:Price$4#826201216Price$48Quantity Demanded10,000 tickets8,0006,0004,0002,0001. Draw the demand and supply curves. What is unusualabout this supply curve?2. What are the equilibrium price and quantity of tickets?3. Your college plans to increase total enrollment next yearby 5,000 students. The additional students will have thefollowing demand schedule:121620Quantity Supplied8,000 tickets8,0008,000Quantity Demanded4,000 tickets3,0002,0001,00008,0008,0004. Add the old demand schedule and the demand schedulefor the new students to calculate the new demand schedulefor the entire college. What will be the new equilibriumprice and quantity?

Original demand and supply for given price - Prices Demand Supply 4 10000 8000 8 8000 8000…

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 Quantity Demanded 10,000 tickets 8,000 6.000 Quantity Supplied 8,000 tickets 8,000 8.000

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 Quantity Demanded 10,000 tickets 8,000 6.000 Quantity Supplied 8,000 tickets 8,000 8.000

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 11PA

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Question

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
#82620
12
16
Price
$4
8
Quantity Demanded
10,000 tickets
8,000
6,000
4,000
2,000
1. Draw the demand and supply curves. What is unusual
about this supply curve?
2. What are the equilibrium price and quantity of tickets?
3. Your college plans to increase total enrollment next year
by 5,000 students. The additional students will have the
following demand schedule:
12
16
20
Quantity Supplied
8,000 tickets
8,000
8,000
Quantity Demanded
4,000 tickets
3,000
2,000
1,000
0
8,000
8,000
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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