ESSENTIALS OF ECONOMICS
11th Edition
ISBN: 9781260225334
Author: SCHILLER
Publisher: RENT MCG
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Question
Chapter 3, Problem 10P
To determine
(a)
The market surplus or shortage when price decrease from $100 to $80.
To determine
(b)
The profit generates from selling 10,000 ticket at price p = $100.
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WHEN DO YOU SAY THAT THERE IS EXCESS SUPPLY FOR A COMMODITY IN THE MARKET?
The demand and supply curves for beach volleyballs are given by:
D = 80-4P
S = -2+2P
The current price is 19. How much is the excess supply or demand? Write a positive number
if you find an excess supply, and write a negative number if you find an excess demand.
(round your answer to one decimal place)
If the equilibrium price for tickets to a Kendrick Lamar concert is $120 each, and he sells them for $100.
Instructions: In part b, enter your response as a whole number.
a. Does he create a market surplus or shortage?
shortage
surplus
Neither a shortage nor a surplus.
b. Suppose scalpers buy 8,000 tickets and resell them for $120 each. How much profit do the scalpers earn?
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