18.6 Everyday Application: Scalping College Basketball Tickets: At many universities, college basketball is intensely popular and, were tickets sold at market prices, many students who wish to attend games would not be able to afford to do so. As a result, universities have come up with non-price rationing mechanisms to allocate basketball tickets.

A. Suppose throughout this exercise that demand curves are equal to marginal willingness to pay curves and no one would ever pay more than $250 for a basketball ticket.

a. First, suppose only students care about basketball. Draw a demand and supply curve for basketball tickets (to one game) assuming the stadium capacity is 5,000 seats and assuming that supply and (student) demand intersect at $100.