Answer
a) The supply curve is completely vertical. This can be true if the basketball arena's capacity is 8,000 seats.
b) The equilibrium price is 8 dollars, and the equilibrium quantity is 8,000 tickets.
c) The new equilibrium price will be 12 dollars, and the equilibrium quantity will remain 8,000 tickets.
Work Step by Step
For parts (a) and (c), please see the graph. The new demand curve is in orange and marked D'.
