Question: Suppose that the demand for a concert, QD, is represented by the following equation, where P is the price of concert tickets and Q is the number of tickets sold: QD = 2500 - 20P
The supply of tickets, QS, is represented by the equation: QS = -500 + 80P
a. Find the equilibrium price and quantity of tickets sold.
b. Carefully graph your result in part a.
c. Calculate the consumer surplus at the equilibrium price and quantity.