Phoebe Mak
Phoebe Mak (23), Hilary Wong (28) F.4B
What was this issue about?
This newspaper was issued on 24thOctober, 2003, from South China Morning
Post. It is about the Harbour Fest, which numbers of people bought the tickets to see the scheduled performance of the British pop band Atomic Kitten and other singers.
But unfortunately, one of the members of Atomic Kitten was sick and the whole band couldn’t attend the show. The tickets then became less valuable and therefore, the government gave away the rest of the tickets freely. So, many people rushed to get the tickets and caused a problem of changing the situation from surplus to shortage.
Situation: The Harbour Fest tickets in the Price of $1000.
Explanation:
The original price of the tickets of the Harbour Fest is around $1000. It is higher than the equilibrium price, few people would afford this high price, so only a small number of people bought the tickets. The quantity demanded of tickets is smaller than the quantity supplied.
So there is an excess supply
(surplus) of those tickets.
Situation: The Harbour Fest tickets in the Price of $0
Explanation:
Due to the band, Atomic Kitten could not attend the concert, the government decided to give out all the tickets in this concert feely. The price of the tickets drops sharply,
From around $1000 each to free of charge. The market price of the tickets is lower than the equilibrium price. Lots of people would like to have the tickets, the quantity demanded of the tickets increases, but the quantity supplied of the tickets did not change, so it from an excess demand (shortage).
What has also happened when the price of the Harbour Fest tickets fall from $1000 to $0??
Explanation:
Firstly, it is $1000 for each of the Harbour Fest ticket. The market price of the tickets is higher than the equilibrium price. The price is too expensive, so nobody would like to buy.
The quantity demanded of the tickets is smaller than the quantity supplied, so there cause a surplus.
But unfortunately, the band, Atomic Kitten could not attend one of the concerts. So the government decided to give out all the tickets freely. The market price of the tickets suddenly became lower than the equilibrium price, so thousands of people went to queue for the tickets, the quantity demanded became higher than the quantity supplied. Although, the quantity demanded of the tickets raised, the quantity supplied remained the same; it was not enough to satisfy all the people’s wants.
So at last, there is excess demand (shortage).
