ESSENTIALS OF ECONOMICS
11th Edition
ISBN: 9781260225334
Author: SCHILLER
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 10P
To determine
(a)
The market surplus or shortage when
To determine
(b)
The profit generates from selling 10,000 ticket at price p = $100.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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)
What effect will each of the following have on the supply of auto tires? The granting of a 50-cent-per-unit subsidy for each auto tire produced.
Knowledge Booster
Similar questions
- Explain the difference between temporary and permanent shortages and surplusesarrow_forwardIf 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?arrow_forwardBeachfront resorts have an inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each price is twice what it was). What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in price?arrow_forward
- The inverse demand for wind powered turbines (that produce electricity from the wind) is P = 24 - 0.2Q. The supply of wind powered turbines is P = 5+ 0.8Q, where P is in thousands of dollars and Q is in thousands of wind turbines. The market for wind powered turbines is perfectly competitive. The equilibrium quantity in the market is thousand wind turbines. (Enter your response as a real number rounded to one decimal place.) The equilibrium price in the market is $ thousand. (Enter your response as a real number rounded to one decimal place.) The government wants to encourage alternative sources of energy and decides to offer wind turbine producers a subsidy of $3 thousand per turbine produced and sold. As a result, the new equilibrium quantity in the market will be thousand turbines. (Enter your response as a real number rounded to one decimal place.) The amount sellers will receive for each turbine sold is $ thousand. (Enter your response as a real number rounded to one decimal…arrow_forwardThe graph below pertains to the supply of paper to colleges and universities. price quantity Refer to the graph shown here. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from x to y. y to x. SA to SB. SB to SA.arrow_forwardWhat components will cause a Shift in the Supply curve? What happens if a market is out of Equilibrium? What does Price Elasticity of Demand Measure?arrow_forward
- The following table gives the demand and supply schedules for widgets. Price {:[" Quantity "],[" Demanded "]:} Quantity Supplied $25 88 130 $20 92 120 $15 96 110 $10 100 100 $5 104 90 The equilibrium price in this market is $ The equilibrium quantity in this market is units. If the price in this market was $20, there would be a of units.arrow_forwardIn the market for lattes, researchers have estimated the following demand and supply curves, Demand: P 39-0.5Q Supply: P- 0.15Q What is the equilibrium quantity in this market? (round your answer to include 2 decimal places.)arrow_forwardPharmaceutical drugs have an inelastic demand and computers have an elastic demand. suppose that technological advance doubles the supply of both product. what happens to the equilibrium price and quantity in each market?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning