Question: The demand function for football tickets for a typical game at OSU is Dip) - 200,000 - 10, 030p. OSU has a clever athletic director

The demand function for football tickets for a typical game at OSU is Dip) - 200,000 - 10, 030p. OSU has a clever athletic director who has mastered Intermediate Micro and sets ticket prices so as to maximize revenue. The Shoe, where football games are held, has capacity of 100,000 people. (a) What is the Inverse demand function? (b) Write an expression for total revenue as a function of the number of tickets. (c) Write an expression for marginal revenue as a function of the number of tickets. (d) Use different colors to draw the inverse demand function and marginal revenue. Also, draw a vertical line representing the capacity of the stadium. (e) What price will generate the maximum revenue? (f) How many tickets will be sold at this revenue-maximizing price? (g) What is the marginal revenue at the revenue-maximizing quantity? (h) What is the price elasticity of demand at the revenue-maximizing price? (1) Will the stadium be full at the revenue-maximizing price? () A series of winning seasons causes the demand curve for football tickets to shift upward. The new demand curve is D(p) - 300,000 - 10, coop. What is the new inverse demand function? (k) What is the marginal revenue for the new demand function as a function of the number of tickets? (1) Draw the new inverse demand function and the new marginal revenue using different color. (m) Ignoring stadium capacity, what price would generate maximum revenue? (n) How many tickets will be sold at this new revenue-maximizing price? (o) IN the athletic director wanted to maximize revenue, how many tickets will he actually sel and at what price? (p) What is the marginal revenue from selling an extra ticket at this new price? (q) What is the price elasticity of demand for tickets at this price

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