A youth soccer club is planning to offer some weekly supplemental coaching sessions to its members. The coaching staff determined that sufficient revenues could be gained if they offered 125 spots at $40 per month. If, however, they could convince players' parents to pay $120 per month, then they could hire additional coaches and rent additional field space to offer 350 spots.

After studying the operations of other soccer clubs, the coaching staff found that one club that charged $100 per month was able to attract 50 participants. Another club offered a similar program for $30 per month and attracted 400 participants.

PLOT your supply and demand curves. 

 

a)If the price of the program was $50, what would be the expected demand?

 

b) If the quantity of spots supplied was 300, what would the price be?

 

c)What is the equilibrium price for this program? 

 

d) Based on this information, what should you set as the price for the program and why?

Answer rating: 100% (QA)

To plot the supply and demand curves we need to first determine the relationship between the price o... View the full answer