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b. In both markets, prices and quantities both fall. c. In both markets, prices rise, quantities fall. d. In one market both prices and quantities rise, in the other both prices and quantities fall. e. None of the above. PART B (INDEPENDENT THINKING AND APPLICATION) 5) (KEY QUESTION) Suppose that the price of tickets at your local movie theatre is determined by market forces. Currently, the demand and supply schedules are as follows: Price ($) Quantity demanded Quantity supplied 4 1000 800 8 800 800 12 600 800 16 400 800 20 200 800 a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true? b. What are the equilibrium price and quantity of tickets? C. Demographers tell you that next year there will be more movie goers in the area. The additional people will have the following demand schedule: Price ($) Quantity demanded 4 400 8 300 12 200 16 100 Now add the old demand schedule and the demand schedule for the new people to calculate the new demand schedule for the entire area. What will be the new equilibrium price and quantity