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nakungth nakungth
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Posts: 1175
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6 years ago
Adriana is in charge of setting the price on basketball tickets for the local team's home games.   From previous experience, she has estimated demand to be
   P = 50 - 0.00166Q,        
where P represents price in dollars per seat, and Q represents seats that could be sold per game.  The seating capacity is 25,000 seats.  Determine the number of tickets that would be sold at a ticket price of $15 each.  Also, determine the consumer surplus that could be absorbed from these consumers if Adriana were able to set ticket prices so that each customer (who values the ticket at least at $15) pays the entirety of his or her actual valuation of the ticket.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
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wrote...
6 years ago
At P = 15, the quantity sold is   = 21,084 tickets.           
The consumer surplus that could be absorbed is represented by the area under demand and above the price line at 15.  Area = (1/2)b*h.
   b = 21,084 - 0 = 21,084
   h = 50 - 15 = 35
Consumer surplus = (.5)(21,084)(35) = $368,970
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