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The supply and demand schedules for tickets to basketball games in town of Oakwood are given in the table below.
Price Quantity Demanded Quantity Supplied$6 5,000 2,0007 4,000 2,0008 3,000 2,0009 2,000 2,00010 1,000 2,000The stadium owners need to find the optimum price for the games.
1. What are the coefficients of elasticity of supply and demand if the price is raised from $6 to $8?2. Characterize the demand and supply for tickets based on the calculated elasticies. 3. What is the optimum price that the stadium owners can set for the tickets? 4. Why is the selected price for the tickets better than other prices given in the table above?
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