In one year,15 bowling alleys opened in California.During that same year,ESPN started broadcasting professional bowling on TV,which sparked more interest in the sport.What would we expect to happen to the price and quantity of a game of bowling in California during that year?

Question

Quizplus · Accepted Answer

The increase in bowling alleys suggests an increase in supply, while the increased interest due to ESPN broadcasting suggests an increase in demand. The equilibrium quantity will likely go up due to both increased supply and demand, but the effect on equilibrium price is indeterminate as it depends on the relative magnitudes of the shifts in supply and demand.

In One Year,15 Bowling Alleys Opened in California