• With seating capacity fixed at 5,000 seats, would there be either excess demand for excess surplus at a ticket price of $6.00? Answer this question by drawing supply and demand curves based on the available data.
• What ticket price should be set to ensure that all seats are taken?
• The demand schedule above may apply to an "average" concert. Suppose that a very popular performer is booked and demand for tickets doubles. What is the new equilibrium price?
• If ticket prices were held at $4.00 because of protests regarding the unfairness of the new price, what would result?

2. Assume the following demand and supply functions:

Qd = 28 - 4P

Qs = 18 + P

• Determine the equilibrium price and quantity.
• Suppose that supply shifts to Qs = 8 + P, with no change in deamnd. Determine the new equilibrium price and quantity.
• The market would be in disequilibrium if market price were not changed with the change in supply. Calculate the shortage or surplus that might develop.
• Illustrate the above events on a graph.