Suppose you attempt t o s ell 100 tickets t o a student production of t he
Question:
Suppose you attempt t o s ell 100 tickets t o a student production of t he play Romeo and Juliet. The quantity demanded for a given price i s the number of tickets people are able and willing t o buy. Some people like Shakespeare a lot and are willing to pay almost any price. Others wouldn’t want to s it through three hours of 16th century English even if the tickets were free! Aside from personal t aste, s ome people can afford the tickets and some people cannot afford the tickets. Both of these factors, personal taste and affordability, affect your ticket sales. In order to understand the concept of quantity demanded more clearly, answer the following questions.
1. Suppose that on Tuesday afternoon, in the library, you were able to sell 15 tickets for $5 each. How many tickets do you think you would have sold if you had charged $3 each instead? Explain your reasoning in words using one or two sentences. (a) 8 tickets (b) 15 tickets (c) 30 tickets
2. On an average weekday there are approximately 300 students in the library. On weekends, there are only about 100 students. How many tickets do you think you would have sold for $5 each at the library on a weekend? Explain your reasoning in words using one or two sentences.
(a) 5 tickets (b) 10 tickets (c) 15 tickets
3. To fill empty seats, t he theater department sells tickets for $3 each on t he day of t he performance. How many tickets do you think you would have sold on Tuesday afternoon for $5 each if the customers knew about this option? Explain your reasoning in words using one or two sentences.
(a) 10 tickets (b) 20 tickets (c) 0 tickets
4. The law of demand says that if you raise the price of a product then the quantity demanded will decrease. Can you think of a product that does not follow the law of demand? Explain your reasoning in words using one or two sentences.
Managerial Economics and Organizational Architecture
ISBN: 978-0073375823
5th edition
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr