ALL QUESTIONS ANSWERED TO 2 DECIMALS Maxim Mcguire owns the Toronto Cubs, A professional Cricket team. Each time the team plays in Cubs Stadium it costs Maxim $179,000 for rent, staffing, stadium preparation, etc. Current ticket prices for a Cubs home game are $28 per ticket, and an average game draws 3200 fans which is only 32% O the Stadium's capacity. Since Maxim studied economics he knows that the market for Cricket games in Toronto is not at equilibrium, Q Q Ticket Price 1200 2400 3600 4800 Number of Tickets Sold USE CHART ABOVE AND TABLE BELOW TO ANSWER FOLLOWING QUESTIONS. (3 Points) What is the Equilibrium Price? What is the Equilibrium Quantity? What needs to occur for equilibrium to be reached(ref question for current situation)? Price Increases, No Change in Quantity Demanded Price Decreases, Quantity Supplied Decreases No Change in Price, Quantity Supplied Decrease O Price Increases, Quantity Supplied Decrease TABLE 1: Fill out the table (9 Points) Ticket Quantity demanded Quantity Supplied Elasticity of Demand Elasticity Price (No Neg. Numbers) USE (1 for Inelastic, U for Unit (From Prev. Price) E for Elastic) 26 4700 3905 28 4200 4200 30 3700 4506 32 3200 4807 00000O 34 2700 5107 36 2200 5407 38 1700 5708 Indicate the change in price and quantity for the shown event in bold. (6 Points) New technology has improved productivity of Cubs employees. Quantity: Increase Uncertain O Unchanged Decrease Price: O Uncertain Increase Decrease Unchanged The Cubs have a great deal of old inefficient equipment that are always needing repairs and are not operational Quantity: O Uncertain Unchanged Increase Decrease Price: O Decrease Uncertain Increase UnchangedALL QUESTIONS ANSWERED TO 2 DECIMALS Maxim Mcguire owns the Toronto Cubs, A professional Cricket team. Each time the team plays in Cubs Stadium it costs Maxim $179,000 for rent, staffing, stadium preparation, etc. Current ticket prices for a Cubs home game are $28 per ticket, and an average game draws 3200 fans which is only 32% O the Stadium's capacity. Since Maxim studied economics he knows that the market for Cricket games in Toronto is not at equilibrium, Q Q Ticket Price 1200 2400 3600 4800 Number of Tickets Sold USE CHART ABOVE AND TABLE BELOW TO ANSWER FOLLOWING QUESTIONS. (3 Points) What is the Equilibrium Price? What is the Equilibrium Quantity? What needs to occur for equilibrium to be reached(ref question for current situation)? Price Increases, No Change in Quantity Demanded Price Decreases, Quantity Supplied Decreases No Change in Price, Quantity Supplied Decrease O Price Increases, Quantity Supplied Decrease TABLE 1: Fill out the table (9 Points) Ticket Quantity demanded Quantity Supplied Elasticity of Demand Elasticity Price (No Neg. Numbers) USE (1 for Inelastic, U for Unit (From Prev. Price) E for Elastic) 26 4700 3905 28 4200 4200 30 3700 4506 32 3200 4807 00000O 34 2700 5107 36 2200 5407 38 1700 5708 Indicate the change in price and quantity for the shown event in bold. (6 Points) New technology has improved productivity of Cubs employees. Quantity: Increase Uncertain O Unchanged Decrease Price: O Uncertain Increase Decrease Unchanged The Cubs have a great deal of old inefficient equipment that are always needing repairs and are not operational Quantity: O Uncertain Unchanged Increase Decrease Price: O Decrease Uncertain Increase UnchangedThe Cubs have a great deal of old inefficient equipment that are always needing repairs and are not operational & The population of Cubs Fans in Toronto has shrunk. O Quantity: O Decrease Unchanged O Uncertain Increase Price: Unchanged Decrease O Uncertain Increase With the information below and chart answer following questions. (6 Points) A Price Ceilling of $30 per ticket has been set by the Cricket ruling body for all games and is shown on the chart below. Q Q Ticket Price 1200 2400 3600 4800 6DOO Number of Tickets Sold With this price control in effect: What would be the market price?$ What would be the number of tickets exchanged(Refer to Table 1)?| tickets Is the market operating efficiently? No O Cannot Determine O Sometimes Yes A Price Ceiling of $26 has been set by the Cricket ruling body for all games and is shown on the chart below. Ticket Price 1200 2400 3600 4800 6DOO Number of Tickets Sold With this price control in effect: What would be the market price?$ What would be the number of tickets exchanged(Refer to Table 1)? Is the market operating efficiently? Cannot Determine O No Yes SometimesThe Cubs have a great deal of old inefficient equipment that are always needing repairs and are not operational & The population of Cubs Fans in Toronto has shrunk. O Quantity: O Decrease Unchanged O Uncertain Increase Price: Unchanged Decrease O Uncertain Increase With the information below and chart answer following questions. (6 Points) A Price Ceilling of $30 per ticket has been set by the Cricket ruling body for all games and is shown on the chart below. Q Q Ticket Price 1200 2400 3600 4800 6DOO Number of Tickets Sold With this price control in effect: What would be the market price?$ What would be the number of tickets exchanged(Refer to Table 1)?| tickets Is the market operating efficiently? No O Cannot Determine O Sometimes Yes A Price Ceiling of $26 has been set by the Cricket ruling body for all games and is shown on the chart below. Ticket Price 1200 2400 3600 4800 6DOO Number of Tickets Sold With this price control in effect: What would be the market price?$ What would be the number of tickets exchanged(Refer to Table 1)? Is the market operating efficiently? Cannot Determine O No Yes Sometimes(3 Points) Bottom of Bracket Top of Bracket Rate $40,760 12% $40,760 $81,520 18% $81,520 $142,660 21% 142.660 Rest of Income 30% The top player on the Cubs is Willis Stone and they earn $181,607 per season. Assuming this is their entire income answer the following questions using the table above: What is their total income taxes? $ What is their marginal income tax rate (As a Percentage)?% What is their average tax rate, Assume($37500 for Income Tax)?% Answer the following questions regarding concerning Elasticity:(3 Points) 1. What is the total revenue if there are 3200 tickets sold at a price of $32?$ 2. If tickets prices have an Elasticity of Demand of 1.29 and we Decrease prices by 16%, what is the percent change in quantity?% 3. What would happen to total revenue we Decrease prices by 16%? Increase O Uncertain O No Change O Decrease(3 Points) Bottom of Bracket Top of Bracket Rate $40,760 12% $40,760 $81,520 18% $81,520 $142,660 21% 142.660 Rest of Income 30% The top player on the Cubs is Willis Stone and they earn $181,607 per season. Assuming this is their entire income answer the following questions using the table above: What is their total income taxes? $ What is their marginal income tax rate (As a Percentage)?% What is their average tax rate, Assume($37500 for Income Tax)?% Answer the following questions regarding concerning Elasticity:(3 Points) 1. What is the total revenue if there are 3200 tickets sold at a price of $32?$ 2. If tickets prices have an Elasticity of Demand of 1.29 and we Decrease prices by 16%, what is the percent change in quantity?% 3. What would happen to total revenue we Decrease prices by 16%? Increase O Uncertain O No Change O Decrease