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Exhibit 5-1  Demand curvesIn Exhibit 5-1, between points a and b, the price elasticity of demand measures:

If a decrease in the price of football tickets increases the total revenue of the athletic department, this is evidence that demand is:

In the above figure, if the production of gloves was restricted to 1,000 a day, then the deadweight loss would equal

Exhibit 5-7  Demand curve for concert ticketsIn Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:

The total cost of producing 4 units is $300. If the marginal cost of producing the fifth unit is $20 and the marginal cost of producing the sixth unit is $10, then the total cost of 6 units is

Suppose that you have won a free ticket to see Lady Gaga performing live.  Tickets normally sell for $100, but your free ticket has no resale value.  You are really not a Lady Gaga fan—the most you would have been willing to pay for a ticket is $45!  You really want to see Shania Twain in concert on the same night.  If you choose instead to go to see Shania Twain, which is really more your style, your opportunity cost of missing the Lady Gaga concert is:

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $16 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, U.S. producers’ ________ from the tariff is ________.

Suppose that you have won a free ticket to see Lady Gaga performing live.  Tickets normally sell for $300, but your free ticket has no resale value.  You are really not a Lady Gaga fan—the most you would have been willing to pay for a ticket is $25!  You really want to see Shania Twain in concert on the same night.  If you choose instead to go to see Shania Twain, which is really more your style, your opportunity cost of missing the Lady Gaga concert is:

Which of the following statements is correct regarding a tax on a good and the resulting deadweight loss?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $16 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, U.S. consumers’ ________ from the tariff is ________.