Table 4-12 A country club usually only allows members to purchase tickets for it
ID: 1139325 • Letter: T
Question
Table 4-12 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 Quantity Demanded Quantity Supplied y Members by Non-members 10 1000 15 20 600 25 400 0 200 are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket Refer to Table 4-12. If both members and price at $30, then there will be a. a shortage of 300 tickets O b. a surplus of 300 tickets. O c. 600 tickets sold. d. 600 tickets unsoldExplanation / Answer
Since there are two types of consumers of celebrity golf tournament, one member of club and non member of club but club are allowing tickets to both types of consumers.
The price set by the country club set prices $30.
So at price $30 per tickets the demand by the members are 200 units and by non-members are 100 units. It means total demand are 300 units while the supply are 600 units.
It means there is excess supply of the tickets by = 600-300
=300 units.
Hence option b is the correct answer.
Option b; a surplus of tickets 300 units.
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