Question

The accompanying table shows the demand and supply schedules for concert tickets at Oracle Arena: Quantities are in THOUSANDS Ticket Price Q d Q s $150.00 20 24 $135.00 22 22 $120.00 24 20 $105.00 26 18 $90.00 28 16 $75.00 30 14 a. Find the equilibrium price and quantity. b. Suppose that the Oakland mayor sets a price ceiling of $105. How large is the shortage of concert? Show on the supply and demand diagrams, and also calculate the amount of ticket shortage. Who loses and who benefits from this policy? c. Suppose that the stock market crashes, demand for concert tickets plummet as a result. 6M less taxi rides are demanded per year (shifting the Qd curve). What effect will the mayor's new policy have now? d. Suppose that the stock market skyrockets, as does the demand. Now the mayor wants to ingratiate himself with the Oracle Arena and sets a $150 price floor. Illustrate the effects of this policy on the market, and determine the new price and quantity. What is the deadweight loss?

Answer #1

Effects of Price Controls
The accompanying table shows the demand and supply schedules for
concert tickets at Oracle Arena:
Quantities are in THOUSANDS
Ticket Price Q d Q s
$150.00 20 24
$135.00 22 22
$120.00 24 20
$105.00 26 18
$90.00 28 16
$75.00 30 14
a. Find the equilibrium price and quantity.
b. Suppose that the Oakland mayor sets a price ceiling of $105. How
large is the shortage of concert? Show on the
supply and demand diagrams,...

Effects of Price Controls The accompanying table shows the
demand and supply schedules for concert tickets at Oracle Arena:
Quantities are in THOUSANDS 6 Lost Demand Ticket Price Q d Q s
$150.00 20 24 $135.00 22 22 $120.00 24 20 $105.00 26 18 $90.00 28
16 $75.00 30 14
a. Find the equilibrium price and quantity.
b. Suppose that the Oakland mayor sets a price ceiling of $105.
How large is the shortage of concert? Show on the supply...

Consider the following supply and demand curves for tickets to
Oakland A’s games, where Q is measured in hundreds of tickets per
game.
Qd =100–2P Qs =20+3P
1. What would happen if bay area residents increase their
preferences for A’s games? Illustrate the effect on the market
graphically, and discuss how you would expect equilibrium quantity
and price to change.
2. What would happen if the price for San Francisco Giants
tickets increased? Illustrate graphically, and discuss how you
would...

The market for pizza has the following demand and supply
schedules:
Price Quantity demand Quantity supplied
4$ 100 25
5$ 75 50
6$ 60 60
7$ 40 90
8$ 25 100
a. Graph the demand and supply curves?
b. What is equilibrium price and quantity?
c. If the actual price in the market is 5$, would this create a
surplus or shortage? What is the amount of this surplus or
shortage? What shall sellers do in this case?
d. If...

Please show all work.
The market for tickets to the symphony can be described by the
following demand and supply curves: QD = 20,000 – 90P and QS =
10,000 + 110P
a. What are the equilibrium price and quantity in the ticket
market?
b. Lovers of classical music persuade the symphony to impose a
price ceiling of $40 per ticket. How many tickets are now sold in
the market? Is there a shortage or surplus of tickets---by how
many?...

Problem 3
The following table shows the supply and demand schedules in a
market. Show all your work and discuss the following
questions.
Price ($)
Quantity
Demanded
(units)
Quantity
Supplied
(units)
0
50
0
2
40
15
4
30
30
6
20
45
8
10
60
10
0
75
What is the equilibrium price in this market? Equilibrium
Quantity? Why?
At a price of $2, will there be a surplus or shortage of units
in this market? Why?
At a...

Graph a typical linear (that means straight line) supply and
demand curve for the tickets to a 100,000 seat stadium. Assume that
the # of seats in the stadium is fixed at the beginning, and price
of each ticket is $50. Label each axis properly and denote
equilibrium price and quantity, P* and Q*, respectively. Now,
consider that the ticket we just drew the supply and demand for, is
a normal good. Suppose the average household income goes down in...

The table below shows the demand and
supply schedules for gizmos.
a. Use the information in the table
to determine the market equilibrium quantity and price of
gizmos.
b. Suppose the government wants to
set a quota that states that only 8 gizmos can be exchanged. What
is the demand price and what is the supply price at this quota
limit?
c. At the quota limit of 8 gizmos,
what is the quota rent available to sellers of gizmos?
d....

The demand and supply equations for the Wheat market are:
Demand: P = 200-4q Supply: P = - 50 + Q Where P = price per bushel,
and Q = quantity 1. Calculate the equilibrium price and quantity.
(1.5 Marks) 2. Suppose the government guaranteed producers a price
floor of AED 90 per bushel. Estimate the effect on the quantity
supplied and demanded. (1.5 Marks) 3. Would the price floor affect
the Market outcome? (Calculate the surplus or shortage )....

These are the supply and demand schedules for good X: Briefly
discuss your responses.
Quantity
Quantity
Price
Supplied Demanded
$10
18
3
9
16
4
8
14
5
7
12
6
6
10
7
5
8
8
4
6
9
3
4
10
2
2
11
1
0
12
a) What is the equilibrium price and quantity? At
this equilibrium, what is the producer’s revenue?
...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 30 minutes ago

asked 30 minutes ago

asked 40 minutes ago

asked 43 minutes ago

asked 47 minutes ago

asked 58 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago