# Question

Suppose demand for seats at football games is P = 1900 - (1/50) Q and supply is fixed at Q = 90,000 seats.

a. Find the equilibrium price and quantity of seats for a football game (using algebra and a graph).

b. Suppose the government prohibits tickets scalping (selling tickets above their face value), and the face value of tickets is $50 (this policy places a price ceiling at $50). How many consumers will be dissatisfied (how large is excess demand)?

c. Suppose the next game is a major rivalry, and so demand jumps to P = 2100 - (1/50) Q. How many consumers will be dissatisfied for the big game?

d. How do the distortions of this price ceiling differ from the more typical case of upward- sloping supply?

a. Find the equilibrium price and quantity of seats for a football game (using algebra and a graph).

b. Suppose the government prohibits tickets scalping (selling tickets above their face value), and the face value of tickets is $50 (this policy places a price ceiling at $50). How many consumers will be dissatisfied (how large is excess demand)?

c. Suppose the next game is a major rivalry, and so demand jumps to P = 2100 - (1/50) Q. How many consumers will be dissatisfied for the big game?

d. How do the distortions of this price ceiling differ from the more typical case of upward- sloping supply?

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