Suppose that the price of tickets is determined by market forces. Currently, the demand and supply are as follows:

Price

4

8

12

16

20

Quantity Demanded

10,000 tickets (8000 quantity supplied)

8,000 tickets (8000 quantity supplied)

6,000 tickets (8000 quantity supplied)

4,000 tickets (8000 quantity supplied)

2,000 tickets (8000 quantity supplied)

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. Your college plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedule

Price Quantity demanded

$4 4,000 tickets

$8 3,000 tickets

$12 2,000 tickets

$16 1,000 tickets

$20 0 tickets

Now add the old demand schedule and the demand schedule for the new students to calculate the new demand schedule for the entire college. What will be the new equilibrium price and quantity?