Suppose the demand curve to see a baseball game is Qd = 600 - 10P. a) How many people would attend the game if tickets were free? b) At what price

Suppose the demand curve to see a baseball game is Qd = 600 - 10P.

a) Howmany people wouldattendthe gameifticketswere free?

b) At what price would there be no fans attending the game?

c) Ifthe stadium'scapacityisfixed at 4,000,what price wouldmaximizerevenue, whileensuringasellout?

2) SupposetheLA Dodgers have amonopoly on in baseball in Los Angeles. They facea demand curveofQd = 100- P,andhave zero marginalcosts.

a) What is the optimalprice per ticketandwhat is the quantityoftickets?

b) Iffixed costs is $500,what is the maximumprofit that the Dodgers canmake?

3) Considerthe market for the SF Giants. The demandcurve is givenby Qd =120- 8p. Thesupplycurve is given by Qs = -6+4P.

a) Whatistheequilibriumpriceandquantity?

b) Ifticketssoldare at $8,will therebe ashortageorsurplus oftickets? Howmuchwilltheshortageorsurplus be?

c) Ifticketssoldare at $12, willthere be a shortageorsurplus oftickets? Howmuchwilltheshortageorsurplus be?

d) Ifa$4.50per-unitsalestax isimposedoneachticket, what will be thenew equilibriumpriceandquantity?

4) TheLA Lakers are considering changingtheirpricesfor thenextseason, and wanttopredictwhat effectaprice changewill haveon ticket sales.

a) Assumethattheteam knowsthatiftheychargeapriceof$8for achild'sticket thentheywillsell250childticketsandiftheysetapriceof$2forachild's ticket thentheywillsell350childtickets. Whatisthepriceelasticityofdemandfora child'sticket?

b) Assumetheteamcollectsthesamedataforadultsandfindsthattheprice elasticityofdemandforadultsis-1.2. Theteamiscurrentlychargingapriceof $16foranadultticket. Iftheywanttoincreaserevenue,shouldtheyraiseor lowerthepriceoftheadultticket?

c) Assumetheycanbreakupadultsintoyoungadults(18-30)andregularadults (30+),andtheyfindthatthepriceelasticityofdemandforyoungadultsis-1.4, andthepriceelasticityofdemandforregularadultsis-1.1. Shouldtheteamsell separateticketstoyoungadultsandregularadultsatseparateprices? Ifso, shouldtheychargeahigherpricetoyoungadultsoralowerpricetoyoung adultscomparedtoregularadults,and why?

5) YouareinchargeofmarketingfortheOaklandAthletics. Evaluatehoweachofthe followingscenarioswillaffectthe equilibrium priceandquantityoftickets tothe Athletics.

a) AriseinthepriceofparkingattheColiseum.

b) Afallin thepriceofticketstotheSanFranciscoGiants.

c) ThecityofOaklandenactsanewpolicyrequiringtheteamtohireanadditional 10securityguardsforeveryadditional5,000fansthatattendthegame. d) It isStephenVogtbobbleheadnight.

6) ThefigurebelowshowsthedemandandsupplycurveforticketstoaStanford baseball game. AssumethatS1 isthesupplycurvebeforeataxisimposed, andS2 is thesupplycurveafterataxisimposedbytheStanford BoardofTrustees.

a) Whatistheamountoftheper-unittax?

b) Whatisthepricethatbuyerspayafterthetaxisimposed?

c) Howistheburdenoftaxsharedbetweenbuyersandsellers?

d) Intheafter-taxequilibrium,howmuchrevenuedoesthe Stanford BoardofTrustees collectfromthetaxontickets?