10. Suppose that the price of hockey tickets at your school is determined by market forces. Currently, the demand and supply schedules are as follows:

Price Quantity Demanded Quantity Supplied

$4 10 000 8000 8

8 000 8000 12 6 000 8000 16 4 000 8000 20 2 000 8000

a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?

b. What are the equilibrium price and quantity of tickets?

c. Your school plans to increase total enrollment next year by 5000 students. The additional students will have the following demand schedule:

Price Quantity Demanded

$4 4000 8

3000 12 2000 16 1000 20 0

Now add the old demand schedule and the demand schedule for the new students to calculate the new demand schedule for the entire school. What will be the new equilibrium price and quantity?