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##### Co-efficients of Elasticity

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1. 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 2,000;7 4,000 2,000;8 3,000 2,000;9 2,000 2,000;10 1,000 2,000;The 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? (8 points);2. Characterize the demand and supply for tickets based on the calculated elasticies. (4 points);3. What is the optimum price that the stadium owners can set for the tickets? (4 points);4. Why is the selected price for the tickets better than other prices given in the table above? (4 points);2. A software producer has fixed costs of \$120,000 per month and her Total Variable Costs (TVC) as a function of output Q are given below. Complete the table (TC, MC, TR, and MR), then answer Parts A and B.;Q TVC Price;1,000 115,000 125;2,000 120,000 74;3,000 130,000 55;4,000 150,000 44;5,000 180,000 30;(a.) (15 points) If software can only be produced in the quantities above, what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity is also listed above? Why? (Show all work.);(b.) (15 points) what should be the production level if fixed costs rose to \$160,000 per month? Explain

Paper#35220 | Written in 18-Jul-2015

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