Changes

:P = $18

:P = $18

We can check this answer by plugging P into the other equation and making sure we get the same value for Q:

We can check this answer by plugging P into the other equation and making sure we get the same value above of Q=12:

:P = $6 + Q

:P = $6 + Q

3. When the '''''supply''''' of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil?  Explain.  When the '''''demand''''' for a good or service increases, such as more people driving cars that need gasoline (refined oil), what happens to the market price of oil?  Explain.

3. When the '''''supply''''' of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil?  Explain.  When the '''''demand''''' for a good or service increases, such as more people driving cars that need gasoline (refined oil), what happens to the market price of oil?  Explain.

:Greater supply of oil means less scarcity, more competition, and a need by the sellers to lower the price to sell its goods.  So the market price decreases.  When the demand increases for a good, here is greater scarcity and the sellers can raise their prices.

:Greater supply of oil means less scarcity, more competition, and a need by the sellers to lower the price to sell their goods.  So the market price decreases.  When the demand increases for a good, there is greater scarcity and the sellers can raise their prices.

4. Why do grocery stores lower the price of their fruit (such as grapes) when they have an oversupply of ripened fruit?  Explain by citing the downward slope of a demand curve, and describe what happens to this fruit after the grocery store lowers its price.

4. Why do grocery stores lower the price of their fruit (such as grapes) when they have an oversupply of ripened fruit?  Explain by citing the downward slope of a demand curve, and describe what happens to this fruit after the grocery store lowers its price.

(A) Given the above supply and demand (you might find it easier to graph it), how many "obstructed view" bleacher seats did the New York Yankees build, and how much does the team make from sales of "obstructed view" tickets at each game?

(A) Given the above supply and demand (you might find it easier to graph it), how many "obstructed view" bleacher seats did the New York Yankees build, and how much does the team make from sales of "obstructed view" tickets at each game?

The price and quantity are where supply equals demand, which according to the table is at P=$15 and Q=300.  Total revenue is then P times Q, which is $9000.

The price and quantity are where supply equals demand, which according to the table is at P=$15 and Q=600.  Total revenue is then P times Q, which is $9000.

<br>(B) Suppose the City of New York passed a law for a maximum price (a "price control") of $2 per "obstructed view" bleacher ticket, because politicians felt that fans should not pay more if they do not get a full view of the field.  Will the obstructed-view seats sell out under this law, and will people have to wait in line in order to buy them?  Would you oppose or support such a law, and why?

<br>(B) Suppose the City of New York passed a law for a maximum price (a "price control") of $2 per "obstructed view" bleacher ticket, because politicians felt that fans should not pay more if they do not get a full view of the field.  Will the obstructed-view seats sell out under this law, and will people have to wait in line in order to buy them?  Would you oppose or support such a law, and why?