An Acting Troupe Wants to Rent Out the Campus Amphitheater

question 41

Multiple Choice

An acting troupe wants to rent out the campus amphitheater for its summer Shakespeare production. They can sell no more that 1200 general admission tickets and up to 300 student tickets according to school policy. They must sell at least 100 student tickets according to student government rules. To make enough money, they must sell at least 500 tickets. The school charges $4 per student ticket and $7 per general admission ticket as its fee for renting the amphitheater. How many of each ticket must be sold to minimize the cost of renting the theater and still make enough money?

• A) 300 student and 200 general admission tickets
• B) 100 student and 1200 general admission tickets
• C) 100 student and 400 general admission tickets
• D) 300 student and 1200 general admission tickets

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Supply and Demand

Fundamental economic concepts where supply represents how much the market can offer, and demand represents how much of a product or service is desired by buyers.

Supply and Demand

Economic principles stating that the price of a good is determined by its availability (supply) and consumers' desire to purchase it (demand).

Price of the Good

The amount of money required to purchase a specific product or service in the market.