Question

Unit 2 Steview Problems + -31738298cmid=24097628page-1 Suppose that the price of basketbalikat at your college is determined by market forces. Currently, the demand and supply schedules are as below: Price Quantity Demanded Quantity Supplied 10,000 2,000 8,000 4,000 6.000 6,000 4,000 8,000 2,000 10,000 # Using the above data to graph the demand and supply curves in one diagram and identify the equilibrium point as E1 b. How much are the equilibrium price and quantity of basketball tickets? of the university at the price coing to be 58, how is it the quantity demanded and how much is the quantity supplied? There is surplus or shortage? d. Suppose that due to the increase in errollment next year, 4000 more students will want to watch the basketbal games on the same diagram of question a, add a new curve to show the effect of this increase in the enrolment on supply or demand for the basketball tickets with the new equilibrium labeled as E2 How much are the now equilibrium price and quantity of basketball tickets? Please add a new supply or demand curves to the graph for a to illustrate the changes in the equilibrium price and quaily caused by the increased number of students who want to watch the basketball games. Take a picture of it upload Please put your name on the graph you draw 11. T. IBIS - - - - % !

just looking for answer to d. does adding students effect both curves? or just demand curve?

Answer 1

(d)

Since 4000 more students will want to watch the games, it means that demand for the games has increased by 4000 at every price.

New demand-supply schedule:

P	Quantity demanded	Quantity supplied	New Quantity demanded
4	10,000	2,000	14,000
8	8,000	4,000	12,000
12	6,000	6,000	10,000
16	4,000	8,000	8,000
20	2,000	10,000	6,000

New graph (New equilibrium is at point E2 with new equilibrium price $16 and new quantity of 8,000).

Demand -- - - - - - - - - - - - - - - Supply New Demand 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000