Question

2. The market for baseball tickets at your college stadium, which seats 2,000, is the following:

Price $2... Quantity Demand 4,000...Quantity Supplied 2,000 Price $4... Quantity Demand 2,000...Quantity Supplied 2,000 Price $6... Quantity Demand 1,000...Quantity Supplied 2,000 Price $8.... Quantity Demand 500.....Quantity Supplied 2,000

a. What is the equilibrium price?

b. What is unusual about the supply curve?

c. At what prices would there be a shortage?.

Answer 1

a. What is the equilibrium price?

Solution:

Price	Quantity demanded	Quantity Supplied
2	4000	2000
4	2000	2000
6	1000	2000
8	500	2000

　

The equilibrium price occurs when price equals $4, where the quantity of baseball tickets demanded equals the quantity of tickets supplied

　

b. What is unusual about the supply curve?

Answer: The unusual about the supply curve is that it is vertical at a level of 2,000 tickets

　

c. At what prices would there be a shortage?

Answer: A shortage will occur when the market price is less than the $4 equilibrium price