(a)
Mention the
The market of baseball tickets at your college stadium, which seats
Price | Quantity demanded | Quantity supplied |
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Answer to Problem 24P
The equilibrium
Explanation of Solution
The above table shows a different prices with respect to change in demand and supply of the baseball tickets, as at price
CONCEPT INTRODUCTION:
Equilibrium price is defined as the point at which the quantity demanded is equal to quantity supplied. It is the price at which supplier is ready to supply its goods and services and buyer is ready to buy the product and services. Equilibrium price tends to stay stable but the variables that affects the supply and demand chain in turn affects the price of the equilibrium. When the demand and supply curves meets that point is considered as equilibrium price point.
(b)
Figure out what is unusual about the supply curve.
The market of baseball tickets at your college stadium, which seats
Price | Quantity demanded | Quantity supplied |
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Answer to Problem 24P
Here the unusual thing about the supply curve is that its line is straight parallel to Y- axis instead of having a slope.
Explanation of Solution
While analyzing the table one can see no change in the quantity supplied as the maximum sitting of the stadium is fixed which cannot be change with the change in price of the tickets. Since there is will be no change in the quantity supplied, the supply curve would be considered as perfectly in elastic, here the quantity supplied remain ineffective by any change in the price
Hence the curve will move parallel to Y- axis creating straight line.
CONCEPT INTRODUCTION:
The positioning of supply curve with respect to price and quantity axis determines elasticity of the supply curves. The elasticity of the supply curve depends on the willingness of the supplier to change its price of the goods and services. Very elastic supply curve indicate very responsive towards the change in price of the goods and service while inelasticity refers to unresponsiveness towards the change in price.
(c)
Mention the prices at which the shortage will occur.
The market of baseball tickets at your college stadium, which seats
Price | Quantity demanded | Quantity supplied |
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Answer to Problem 24P
Here shortage will occur at ticket price
Explanation of Solution
As the definition of market shortage states that when the quantity demanded is more than the quantity supplied this situation is referred to as market shortage, here when observed in the table the quantity demanded exceeds up to
CONCEPT INTRODUCTION:
Shortage:- Some time the market is not in
(d)
Mention the prices at which surplus will occur.
The market of baseball tickets at your college stadium, which seats
Price | Quantity demanded | Quantity supplied |
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Answer to Problem 24P
Here at price
Explanation of Solution
As we observe the table the prices at which the demand is less as compared to supply of the tickets are
At both the occasions the when demand of the tickets are compared with the supply of ticket. There is huge gap in between them.
CONCEPT INTRODUCTION:
Market surplus is a stage when the quantity supplied is more than the quantity demanded. The reason could be to earn more profit or to get rid of stored stocks. The
(e)
If there is addition of new students (all baseball fans) next year of around
The market of baseball tickets at your college stadium, which seats
Price | Quantity demanded | Quantity supplied |
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Answer to Problem 24P
The new quantity demanded and quantity supplied schedule are as shown in the table
Price | Quantity demanded | Quantity supplied |
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Also as can been determined now the new equilibrium price would be
Explanation of Solution
New schedule of demand and supply as shown in the table
Price | Quantity demanded | Quantity supplied |
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If there is addition of 1000 students next year who all are baseballs fans, this would lead to addition to quantity demanded the equilibrium price point will shift towards price where demand and supply are same.
CONCEPT INTRODUCTION:
Equilibrium price is defined as the point at which the quantity demanded is equal to quantity supplied. It is the price at which supplier is ready to supply its goods and services and buyer is ready to buy the product and services. Equilibrium price tends to stay stable but the variables that affects the supply and demand chain in turn affects the price of the equilibrium. When the demand and supply curves meets that point is considered as equilibrium price point.
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