Ticket Analysis Economic (7th period) Wing Yung Ho Friday, October, 2010 State 1 A.

Description of the event: Event: Kings of Leon Concert Venue: TD garden, Boston, WA Date: Nov, 14, 2010 Performer: Kings of Leon B. demand schedule and curve Price 260.00 280.00 300.00 320.00 340.00 Qd 22000 21000 19,580 18000 17000

C. supply schedule and curve

Price 260.00 280.00 300.00 320.00 340.00

Qs 19,580 19,580 19,580 19,580 19,580

D. Demand and Supply graph

State 2 1. Analyze the intersection of S and D. What is the Equilibrium price? The Equilibrium price is $300 2. a. How many tickets will be demanded and sold at EQp? 19580 tickets will be sold and demanded at the Equilibrium price b. Is EQp lower, higher, or equal to the market price (Mp) that the arena is supposedly changing for all tickets? The Equilibrium price is equal to the average ticket price 3. Will a surplus or shortage of tickets develop? Neither shortage nor surplus of tickets develop 4. What do you recommend that the promoters of the concert/arena management do to rectify this situation? / 5. Add columns to your demand table that you will use to compute the following: - Total Revenue ( price x Quantity) - Elasticity - Type of Elasticity

Price 260.00 280.00 300.00 320.00 340.00

Qd 22000 21000 19,580 18000 17000

Qs 19,580 19,580 19,580 19,580 19,580

Total Revenue 5720000 5880000 5874000 5760000 5780000

Elasticity

Type of Elasticit y Inelastic demand Elastic demand Elastic demand Inelastic demand

0.628 1.105 1.303 0.943

State 3 Situation : There are 1580 seat in the TD garden will not be open to

the audience because the seats need to be repaired. Demand schedule and curve Price 260.00 280.00 300.00 320.00 340.00 Qd 22000 21000 19,580 18000 17000

Supply schedule and curve Price 260.00 280.00 300.00 320.00 340.00 Qs 18,000 18,000 18,000 18,000 18,000

Demand and Supply graph

State 4 1. Analyze the intersection of S and D. What is the Equilibrium price? The Equilibrium price is $320

2. a. How many tickets will be demanded and sold at EQp? 18000 tickets will be sold and demanded at the Equilibrium price b. Is EQp lower, higher, or equal to the market price (Mp) that the arena is supposedly changing for all tickets? The Equilibrium price is higher to the average ticket price 3. Will a surplus or shortage of tickets develop? Shortage of tickets develop 4. What do you recommend that the promoters of the concert/arena management do to rectify this situation? Hold one more concert. Cause we cannot change the number of the seats in the arena. The supply is stable and you cant change it. 5. Add columns to your demand table that you will use to compute the following: - Total Revenue ( price x Quantity) - Elasticity

- Type of Elasticity

Price 260.00 280.00 300.00 320.00 340.00

Qd 22000 21000 19,580 18000 17000

Qs 18,000 18,000 18,000 18,000 18,000

Total Revenue 5720000 5880000 5874000 5760000 5780000

Elasticity

Type of Elasticit y Inelastic demand Elastic demand Elastic demand Inelastic demand

0.628 1.105 1.303 0.943

Kings of Leon concert Ticket Analysis Wing Yung Ho Economic(7

th

period)

October,19,2010