Question

Suppose the market demand for tickets to a hockey game is Qd = 10,000 – 400P...

Suppose the market demand for tickets to a hockey game is

Qd = 10,000 – 400P and the supply is Qs = 4000

what price should they charge to make sure that there are no surpluses or shortages – the price necessary to exactly clear the market? Draw a market model to show this equilibrium price and quantity for hockey tickets.

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Answer #1

Ans. 1) They should charge $15 per ticket for a hockey game to make sure that there are no surplus or shortages in the market and 2) the equilibrium quantity is 4,000 tickets.

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