Supply and demand analysis using foot ball game and ticket price.
(a) "Lately the price of gold keeps going up and up, and people keep buying more and more. The demand for gold must be upward sloping." Does this statement contain an analytical error? Fully explain your reasoning
(b) Illustrate what happens to the demand for pizza if the price of that product decreases? Illustrate what happens to the supply of tomatoes if the wages of tomato pickers increase? If national income falls, what happens to the demand for pizza? What happens to the demand for pizza if the price of hamburgers increases? What happens to the demand curve for pizza? What are the effects on equilibrium price and quantity of pizza?
(c) Assume that a big football game is a sell-out on a college campus at a given ticket price of $25.00 and that the quantity demanded far exceeds the quantity of tickets supplied at that price. "Scalping" results. Fully explain this on the basis of supply and demand. What will occur?