Problem
1. The football stadium of the University of the North West Territories has 30 seats. The demand for tickets is given by P = 36-(1/2)Q, where Q is the number of ticket-buying fans.
(a) At the equilibrium admission price how much revenue comes in from ticket sales for each game?
(b) A local fan is offering to install 6 more seats at no cost to the University. Compute the price that would be charged with this new supply and compute the revenue that would accrue each game. Should the University accept the offer to install the seats?
(c) Redo part (b) of this question, assuming that the initial number of seats is 40, and the University has the option to increase capacity to 46 at no cost to itself. Should the University accept the offer in this case?
2. Suppose farm workers in Mexico are successful in obtaining a substantial wage increase. Illustrate the effect of this on the price of lettuce in the Canadian winter.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.