Question 1.

Find the equilibrium price, quantity, and revenue in a market characterized by the following information:

Qd = 5000 - 20P [demand curve]

Qs = 30P [supply curve]

Question 2

. [20 points] The owner of a baseball team and local stadium has commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P = 22 - 0.2Q, where P is the average price of a ticket and Q represents the number of seats (expressed in thousands). The local stadium seats a maximum of 56,000 per game. Suppose the owner offers you 10% of the revenues. If you can only choose a uniform per-ticket price, what is the maximum amount you can earn per game? (Note: Assume that all seats and all games are the same.)