Table 310 shows the supply and demand for movie tickets in a...

Name: table 310 shows the supply and demand for movie tickets in a city graph demand and supply and identify the equilibrium then calculate in a table and graph the effect of the following two changes a thr
Uploaded: 2019-07-21T21:27:55-08:00
Duration: 3 min 30 s
Channel: Tristan Wille
Description: table 310 shows the supply and demand for movie tickets in a city graph demand and supply and identify the equilibrium then calculate in a table and graph the effect of the following two changes a thr

Table 3.10 shows the supply and demand for movie tickets in a city. Graph demand and supply and identify the equilibrium. Then calculate in a table and graph the effect of the following two changes. a. Three new nightclubs open. They offer decent bands and have no cover charge, but make their money by selling food and drink. As a result, demand for movie tickets falls by six units at every price. b. The city eliminates a tax that it placed on all local entertainment businesses. The result is that the quantity supplied of movies at any given price increases by 10$\% .$

Transcript

00:01 All right, we're doing problem number 56 from chapter three.

00:03 Supply and demand for movie tickets in a city are shown in table 3 .10, as you see in the right.

00:08 Graph demand and supply and identify the equilibrium, then calculate in a table and graph the effect of the following two changes, which we'll discuss after we graph.

00:17 So first, let's graph.

00:19 Here is our price quantity.

00:25 And so where's the equilibrium? the equilibrium is where quantity, demand, and quantity supplied intersect.

00:31 21 at $8 per pound.

00:36 So there's supply, there is demand, there is $8, and that was very poorly drawn, dashed line, there is 21 pounds.

00:59 So, all right, now on to a, it's asking three new nightclubs open.

01:04 They offer decent bands and have no cover charge, but as as a result, but make their money by selling food and drink.

01:08 As a result, demand for movie tickets falls by six units at every price.

01:12 So if demand is falling by six at every price, this quantity of demand is just going to go down by six at every price.

01:20 So 26 becomes 20, 24 becomes 18, 22 becomes 16, 21 becomes 15, 20 becomes 15, 20 becomes 14.

01:33 Where is our new equilibrium? it's here at $18 at $6 a pound.

01:37 So let's graph that.

01:41 Actually, i'll make this a tiny bit higher.

01:45 Okay, here.

01:47 Supply demand, price quantity...

Question

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