Economics Homework Help

1) The owner of a baseball team and local stadium has commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P = 22 – 0.2Q, where P is the average price of a ticket and Q represents the number of seats (expressed in thousands). The local stadium seats a maximum of 56,000 per game. Suppose the owner offers you 10% of the revenues. If you can only choose a uniform per-ticket price, what is the maximum amount you can earn per game? (Note: Assume that all seats and all games are the same.)

2) Is the following statement true or false? Explain.

Income elasticity of demand for a product is high when own price elasticity of demand for the same product is low.

3) Find the equilibrium price, quantity, and revenue in a market characterized by the following information:

,

Qd = 5000 – 20P          [demand curve] 

.Qs = 30P                    [supply curve]