Question

Let d1 represent the demand curve for premium seats to the broadway hit hamilton, and let s1 represent the supply curve for these seats. if the producers of the show charge $497.50 for a premium seat, the scalpers will charge (a) $ , which is (b) $ more than the price listed at the theater's box office.

Answer 1

Answer: If the producers of the show charge $497.50 for a premium seat, the scalpers will charge (a) $1200 , which is (b) $702.50 more than the price listed at the theater's box office.

Step-by-step explanation: The producers are charging $497.25 for 400 seats as given by the supply curve. The scalpers will therefore charge a price which is given by the demand curve for 400 seats. Thus, the scalpers will charge $1200 for Broadway premium tickets.

The difference will therefore be= $1200 -$497.50 = $702.50