Chapter 4 Equilibrium
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the
club is considering allowing non-members to purchase tickets this year. The demand and supply
schedules are as follows:
Price
Quantity Demanded
by Members
1000
800
600
400
200
$10
$15
$20
$25
$30
Quantity Demanded
by Non-members
500
400
300
200
100
Quantity Supplied
600
600
600
600
600
____ 37. Refer to Table 4-6. If both members and non-members are allowed to purchase tickets to this year's
celebrity golf tournament and the country club sets the ticket price at $30, then there will be
a. a shortage of 300 tickets.
b. a surplus of 300 tickets.
c. 600 tickets sold.
d. 600 tickets unsold.
Figure 4-8
50
45
price
S
40
35
30
25
20
15
10
5
D
100 200 300 400 500 600 700 800
quantity
____ 38. Refer to Figure 4-8. At a price of $35,
a. there would be a shortage of 400 units.
b. there would be a surplus of 200 units.
c. there would be a surplus of 400 units.
d. there would be a surplus of 600 units.
____ 39. Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music
compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start
producing music compact discs, and music lovers experience an increase in income?
a. Price will fall and the effect on quantity is ambiguous.
b. Price will rise and the effect on quantity is ambiguous.
c. Quantity will fall and the effect on price is ambiguous.
d. Quantity will rise and the effect on price is ambiguous.