1 The supply and demand for concert tickets are given in the table below. Price ($) 0 4 8 12 16 20 24 28 32 36 40 Quantity demanded 15 14 13 12 11 10 9 8 7 6 5 Quantity supplied 0 0 0 0 0 1 3 5 7 9 11

2. Plot the supply and demand curves to scale and establish the equilibrium price and quantity.

3.What is the excess supply or demand when price is $24? When price is $36?

4.Describe the market adjustments in price induced by these two prices. (

5. Optional: The functions underlying the example in the table are linear and can be presented as P = 18+2Q (supply) and P = 604Q (demand). Solve the two equations for the equilibrium price and quantity values.

6. Illustrate in a supply/demand diagram, by shifting the demand curve appropriately, the effect on the demand for flights between Calgary and Winnipeg as a result of:

7.Increasing the annual government subsidy to Via Rail.

8. Improving the Trans-Canada highway between the two cities.

9.The arrival of a new budget airline on the scene.r