4 . Ch. 4 Problems and Applications Q11 Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows: Price Quantity Demanded Quantity Supplied ( Dollars) (Tickets) (Tickets) 4 12,000 10,000 8 10,000 10,000 12 8,000 10,000 16 7,000 10,000 20 6,000 10,000Your college plans to increase total enrollment next year by 1000 students. The additional students will have the following demand schedule: Price Quantity Demanded (Dollars) ( Tickets J 4 6,000 8 5,000 12 4,000 16 3,000 20 2,000 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. 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. 20 O Original Demand 16 -0- 14 12 Supply Price of Tickets (Dollars) 10 -+ CO Original Equilibrium 4 New Demand 2 8 10 12 14 16 18 20 New Equilibrium Quantity of Tickets (Thousands)