When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates thequantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people.Price perTicketQuantity of TicketsDemandedQuantity of TicketsSupplied20,000$5045,00010040,00020,00015035,00020,00020030,00020,00025025,00020,00030020,00035015,00020,00020,000The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ 300 per ticket.The quantity of tickets demanded at the face-value price is 45,000 tickets.For this example, a shortage oftickets exists at the face-value price.

Equilibrium is achieved at a point where quantity demanded is equal to quantity supplied.

When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people. Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 20,000 100 40,000 20,000 150 35,000 20,000 200 30,000 20,000 250 25,000 20,000 300 20,000 20,000 350 15,000 20,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50 The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ 300 per ticket. The quantity of tickets demanded at the face-value price is 45,000 tickets. For this example, a shortage of tickets exists at the face-value price.

When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people. Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 20,000 100 40,000 20,000 150 35,000 20,000 200 30,000 20,000 250 25,000 20,000 300 20,000 20,000 350 15,000 20,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50 The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ 300 per ticket. The quantity of tickets demanded at the face-value price is 45,000 tickets. For this example, a shortage of tickets exists at the face-value price.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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