$3.$ Problems and Applications Q$11$

Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows:

Use the blue points $($circle symbol$)$ to graph the demand for basketball tickets. Then use the orange points $($square symbol$)$ to graph the supply of tickets. Finally, use the black point $($plus symbol$)$ to indicate the equilibrium price and quantity in this market. Use the blue points $($circle symbol$)$ to graph the demand for basketball tickets. Then use the orange points $($square symbol$)$ to graph the supply of tickets. Finally, use the black point $($plus symbol$)$ to indicate the equilibrium price and quantity in this market. Your college plans to increase total enrollment next year by $7,000$ students. The additional students will have the following demand schedule:

Add the old demand schedule and the demand schedule for the new students to calculate the new demand schedule for the entire college. Use the purple points $($diamond symbol$)$ to draw this new demand curve on the previous graph. Then use the grey point $($star symbol$)$ to indicate the new equilibrium price and quantity.