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Table 3.10 shows the supply and demand for movie tickets in a city. Graph demand and supply and identify the equilibrium. Then calculate in a
Table 3.10shows the supply and demand for movie tickets in a city. Graph demand and supply and identify the equilibrium. Then calculate in a table and graph the effect of the following two changes.
- Three new nightclubs open. They offer decent bands and have no cover charge, but make their money by selling food and drink. As a result, demand for movie tickets falls by six units at every price.
- The city eliminates a tax that it placed on all local entertainment businesses. The result is that the quantity supplied of movies at any given price increases by 10%.
Price per Pound | Qd | Qs |
---|---|---|
$5.00 | 26 | 16 |
$6.00 | 24 | 18 |
$7.00 | 22 | 20 |
$8.00 | 21 | 21 |
$9.00 | 20 | 22 |
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