56. Supply and demand for movie tickets in a city are shown in Table 3.10.
Graph demand and supply and identify the
equilibrium. Then calculate in a table and
graph the effect of the following two
changes.
a. Three new nightclubs open. They
offer decent bands and have no cover
charge but make their money by selling
food and drink. As a result, demand for
movie tickets falls by six units at
every price.
b. The city eliminates a tax that it had
been placing on all local entertainment
businesses. The result is that the
quantity supplied of movies at any
given price increases by 10%.