Suppose all you knew were a couple of points from a demand or supply schedule, and you were asked to determine the equations that described the demand and supply of the product. For example, what if you knew that,
- At a price of $5, 1,000 movie tickets would be demanded in a small town, but only 200 would be supplied, while,
- At a price of $15, 300 movie tickets would be demanded and 1,200 would be supplied.
Could you use this information to derive the demand and supply equations for movie tickets? Could you then calculate the equilibrium price and quantity of movie tickets? Watch the video lecture that follows, and then apply what you learned to find the demand and supply equations for movie tickets using the data above. Also determine the equilibrium price and quantity of movie tickets.