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10 NEWS WIRE MARKET SHORTAGE Scalpers Profiting Greatly from Pope's Visit points New York. Pope Francis visit to New York City was a blessed event. It was also a blessed procession through Central Park. But church officials had only 40,000 tickets to distribute, which .Book they did by lottery - for free. That left 53,000 New Yorkers without tickets, It was a scalper's Assume that total output is determined by the formula: WAMONO Ask ing tickets online. The free tickets were simply mailed in a PDF to lottery winners, with no ID required, metaing them easy to resell. Scalped "ckets sold for as much as $3,000 a pair AllboughtWu 00 a pair. Although church officials urged scalpers to repent, the Total output = number of workers x productivity Print opportunity for profit was irresistible Investment Goods(units per time) References Source: News accounts, September 2015 Hint: Assume there are 100 workers and each worker produces $100 of output. Instructions: Round your responses to one decimal place. 2 3 4 9 10 a. If the workforce is growing by 2 percent a year but productivity doesn't improve, how Consumer Goods(units per time) fast can output increase? According to the News Wire, Output can increase by a. How large was the market shortage at the Church-set price of SO? tickets b. If the Church had sold the tickets for $100, how would have quantity demanded changed? b. If productivity increases by 4 percent and the number of workers increases by 2 Quantity demanded would have likely percent a year, how fast will output grow? Output will grow by Use the figure above to answer the following questions. c. If the Church sold the tickets for $100, would the market shortage have been larger or smaller? a. What is the opportunity cost of increasing investment from 6 units to 8 units? The market shortage would have likely been . What will happen to future production possibilities if investment increases now? d. If the Church sold the tickets for the equilibrium price, would a market shortage exist? Production possibilities will . What will happen to future production possibilities if only consumer goods are produced now? Production possibilities will Suppose the following data describe output in two different years: Item Year 1 Year 2 Which curve shifts, and in what direction, when the following events occur ir Apples 20,000 @ $0.25 each 30,000 @ $0.30 each 6 Bicycles 700 @ $800 each 900 @ $650 each If the equilibrium price for tickets to a a Post Malone concert is $110 each an a. College students arrive back into town for the fall semester. Apps 10,000 @ $1.00 each 12,000 @ $2.00 each a. Does he create a market surplus or shortage? nts (Click to select) Dint Shortage Surplus eBook b. Two more Chipotle restaurants open. eBook Neither a shortage nor surplus Ask (Click to select) a. Compute nominal GDP in each year Ask Print . Several pizza shops open. Year 1: Print b. Suppose scalpers buy 12,000 tickets and resell them for $110 each. How Year 2: ferences (Click to select) References Demand decreases. By what percentage did nominal GDP change between Year 1 and Year 2? Supply decreases. Percentage change = [(new value - original value)/original value]*100 Supply increases. Demand increases. Instructions: Round your response to one decimal place. Neither curve changes. Nominal GDP by Now compute real GDP in Year 2 by using the prices of Year 1. Real GDP: . By what percentage did real GDP increase between Year 1 and Year 2? Percentage change = [(new value - original value)/original value]'100 Instructions: Round your response to one decimal place. Real GDP by