6. (LO 4, 5, 6) Table 2.15 shows the demand and supply for the World Cup Final game in the Maracana Stadium in Rio.

2011 2012 2013 Quantity Quantity Quantity Price $ Demanded Demanded Demanded 320 000 5200 5500 5300 340 000 5100 5400 5200 360 000 5000 5300 5100 380 000 4900 5200 5000 400 000 4800 5100 4900 420 000 4700 5000 4800 440 000 4600 4900 4700 TABLE 2.14 Price $ Quantity Quantity Quantity per Ticket Demanded 1 Supplied Demanded 2 150 119 000 79 000 200 109 000 79 000 250 99 000 79 000 300 89 000 79 000 350 79 000 79 000 400 69 000 79 000 450 59 000 79 000 TABLE 2.15 Price 1.00 Quantity Supplied 100 Quantity Demanded Surplus/

Shortage -60 TABLE 2.16

a) If the organizers wish to ensure a sell-out for the final game, what is the highest price per ticket they should charge?

Price of:

b) What would happen if the organizers decided to charge a price of $200 per ticket?

Answer: There would be a (surplus/shortage)

of tickets.

c) Suppose that the demand for each game in the qualifying rounds is 20 000 less than for the final game. Show the new demand in Table 2.15.

d) If the organizers wish to ensure a sell-out for each game, what is the highest price per ticket they can charge for a qualifying round game?
Price of:
Advanced (Problems 7–10)