EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 3, Problem 7SP
To determine
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Suppose that you estimated the following demand curve for footballs.
Q = 400 - 6P +.0051
Q Represents quantity demanded P represents price and I represents average income
You know that the current market price is $50 and average income is $20,000
a) Calculate current demand.
b) Calculate the price elasticity of demand.
Describe how each of the following will affect the demand for television sets
a) a rise in incomes ( assuming televisions are considered to be normal good.)
b) A higher expected future prices for television sets.
c) Olympic is starting in next month, and the nation is crazy to watch Olympics.
The following table describes the demand for season tickets at Powerhouse University, a perennial football power
Price per ticket per game
Tickets Demanded
$80
105,000
$90
100,000
$100
93,000
$110
85,000
$120
75,000
Currently the stadium seats 75,000 and season tickets are priced at $110. if the university expands the stadium to seat
90,000 and they do not raise ticket prices, by how much will revenue increase per game?
Chapter 3 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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Similar questions
- Sanford stadium has 90,000 seats. What is the shape of the supply curve for tickets to football games at that stadium? Explainarrow_forwardIn 2014, the Seattle Seahawks won the Super Bowl. Draw a supply and demand graph for Seahawk tickets in the following season to show the impact of the Super Bowl win. (It would be the same graph for Seahawk t-shirts, hotdogs at the game and beer.)arrow_forwardSome NHL hockey teams have struggled with attendance (even before the Coronavirus outbreak). It has been suggested that if these NHL hockey teams would lower ticket prices, they could increase revenue from ticket sales. This suggestion is based on which of the following assumptions? a. there are no good substitutes for NHL hockey b. demand for NHL hockey is price elastic c. demand for NHL hockey is price inelastic d. demand for NHL hockey is unitary elasticarrow_forward
- Question 20. 20 Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game Price per Ticket Quantity Demanded $13 1,000 11 2,000 9 3,000 7 4,000 5 5,000 3 6,000 varies inversely with ticket prices. varies directly with ticket prices. is perfectly inelastic. is perfectly elastic.arrow_forwardrightward shift in demand for new games because of the NEW Nintendo PS5arrow_forward3.2. The stadium of the MANU has 30 seats. The demand curve for tickets has a price intercept of $36 and a quantity intercept of 72.3.2.1. Draw the supply and demand curves to scale (in Excel and copy it to your word answer-This demand curve has the form P = 36−0.5×Q.) 3.2.2. Determine the equilibrium admission price, and the amount of revenue generated from ticket sales for eachgame. 3.2.3. A local alumnus and benefactor offer to install 6 more seats at no cost to the University. Compute the price that would be charged with this new supply and compute the revenue that would accrue at this new equilibrium price. Should the MANU accept the offer to install the seats?arrow_forward
- Consider a market in which the supply curve is perfectly inelastic. If there is an increase in demand, what will happen to the equilibrium price and quantity? a) Price will increase, quantity will remain the same b) Price will remain the same, quantity will increase c) Both price and quantity will increase d) Neither price nor quantity will changearrow_forwardwhat happens to the market price for rental cars as a result of the demand shiftarrow_forwardAutoworkers negotiate a wage increase. How does this change affect the supply curve of cars? Group of answer choices The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward, leftward, or not at all. It does not shift the supply curve or create a movement along it. It shifts the supply curve leftward. It shift the supply curve rightward. It creates a movement downward along the supply curve.arrow_forward
- Questions numbers 16 to 20 are based on the following diagram. The diagram represents an equilibrium for the market of cars produced by Perodua Which of the following factors does not shift the demand curve to the left? Proton is launching a new car model that is more fuel-efficient. Perodua produces cars that have safety features during floods. Increase in the population of Malaysia. The government reduced excise duties on imported cars. Clear my choicearrow_forwardSince the supply curve intersects the horizontal axis, all of the points along the supply curve shown are inelastic. true or false and explainarrow_forwardRefer to the demand schedule below: Price Quantity demanded ($) 80 0 70 50 60 100 50 150 40 200 30 250 20 300 10 350 0 400 Suppose the price increases from $10 to $20. Demand is inelastic and total revenue increasesarrow_forward
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