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The equation for the demand curve for Red Sox tickets is given by P=800-0.01Q^d The supply curve is given by P=0.005Q^s. Prices are in dollars per tickets
The supply curve is given by P=0.005Q^s. Prices are in dollars per tickets
(a) Graph the supply and demand curves.
(b) What is the equilibrium price and quantity?
(c) What is the slope of the demand curve?
(d) What is the slope of the supply curve?
(e) A sales tax of $10 per tickets is instituted by the city of Boston to be instillected from suppliers. Add this situation to your graph. What happens to the equilibrium quantity and post-tax price? You can answer generally, you do not need to solve for exact quantities and prices but use your graph to explain.
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