Suppose that the price of tickets to see your local football team play at home is determined by market forces. Currently, the demand and supply schedules are as follows:

Price Quantity demand Quantity Supply

10 50,000 30,000

20 40,000 30,000

30 30,000 30,000

40 20,000 30,000

50 10,000 30,000

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 team plans to increase total capacity in its stadium by 5,000 seats next season. What admission price should it charge if it wants to maximise total revenue?