Connect Online Access for Essentials of Economics
11th Edition
ISBN: 9781260521269
Author: Bradley Schiller, Karen Gebhardt
Publisher: Mcgraw-hill Higher Education (us)
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Question
Chapter 3, Problem 6QFD
To determine
The consequences of setting the price of concert tickets below the equilibrium price.
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Students have asked these similar questions
Consider the market for air travel. If airport fees rise and cause the price of plane tickets to rise,
All answers are correct
It will cause airlines to lower the number of flights they offer.
It will cause consumers to travel less by plane and more by car.
It will cause buyers and sellers in the market to adjust their behavior.
Does paperless ticketing benefit consumers more than traditional ticketing that allows tickets to be resold? Explain.
We often find that for major sporting events (playoffs, Super Bowl, etc.) the quantity of tickets demanded is greater than the quantity of tickets supplied. How would the market solve this problem? Would consumers be better off or worse off? Why?
Chapter 3 Solutions
Connect Online Access for Essentials of Economics
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- How does the potential for a secondary ticketing market affect the behavior of consumers and sellers in the primary market for tickets?arrow_forwardOne reason movie theaters charge a lower admission price to children is thatarrow_forwardWill there be a market surplus or market shortage when the price is $20?Evaluate the S(x) & D(x), then comparearrow_forward
- If one gas station reduces its prices, must other gas stations match the price reduction? Why or why not?arrow_forwardThe demand and supply curves for beach volleyballs are given by: D = 80-4P S = -2+2P The current price is 19. How much is the excess supply or demand? Write a positive number if you find an excess supply, and write a negative number if you find an excess demand. (round your answer to one decimal place)arrow_forwardAbove is the demand schedule for tickets to a Carnegie Hall performance of the Grateful Dead. Carnegie Hall seats 2,400 people. What is the equilibrium price and quantity for a concert of the Grateful Dead at Carnegie Hall? If tickets were sold for $26, what would happen (be specific)?arrow_forward
- At 8 million hours, what areas make up the total economic surplus in this market?arrow_forwardSome states and localities have laws that make it illegal to resell event tickets at prices higher than the original, legal market price. What would be the positive and negative consequences to such a law?arrow_forwardThe market demand and supply equations for theme park in a city are given by P=30–0.005QD andP=10+0.005QS,wherePisthepriceindollarsandQD isthe quantity of theme-park tickets demanded and QS is the quantity of theme park ticket supplied. Explain the implications of the welfare of consumers, producers and the society when the price of theme park ticket is fixed at $15.arrow_forward
- Some states and localities have laws that make it illegal to resell event tickets at prices higher than the original, legal market price. What would be the positive and negative consequences of such a law? Assume the legal price is below the equilibrium price.arrow_forwardThis is the market for steer. Steer are processed into 1 hide and 1 beef. Initial Demand for hides: Q = 70 -P Initial Demand for beef: Q = 100- 0.5P Market supply for steer: Q =-35 + 0.5P New Scenario: The demand for beef rises. People are now willing to pay 80% more than what they used to pay for beef. Hints: you must correctly calculate the new equation for hides to get this question correct. If you feel stuck, try some prices with the original demand for beef and your new demand for beef. Are people willing to pay 1.8 tim as much for each quantity of beef? If so, you have correctly calculated your new Deef Curve. • For example, with the initial demand, people are willing to pay $160 for 20 beef and $100 for 50 beef. the new scenario, the new demand curve needs to show that people are now willing to pay $288 for 20 beef and $180 for 50 beef. a) Calculate new market Q and P for steer b) Calculate new market Q and P for hides c) Calculate new market O and P for beefarrow_forwardS(x) = 0.50x + 50 D(x) = -0.50x + 80 Is there a market surplus or shortage when the price is $800?arrow_forward
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