Adam and Billy each own a factory where they produce cars and trucks. The table below shows the possible combination of cars and trucks they can produce per day when using their resources efficiently. Data table Adam Billy Trucks Cars Trucks Cars 0 12 0 4 1 9 2 3 2 6 4 2 3 3 6 1 4 0 8 0 The PPF for Adam is shown above. Point(s) [eff] represent efficient production. Point(s) [ineff] represent inefficient production. Point(s) [att] represent attainable production.

The market for Las Vegas hotel rooms Show on a supply and demand graph the impact of the following events on the equilibrium price and quantity. Las Vegas hotels raise their resort fees* and at the same time entrepreneurs enter the market and open up several brand new hotels. *a resort fee is paid to have access to the hotel’s swimming pool, gym, spa, Wifi, telephone, and other amenities. The demand for hotel rooms [demand]. What factor caused the shift? [demandfactor] The supply of hotel rooms [supply]. What factor caused the shift? [supplyfactor] Effect on equilibrium price? [price] Effect on equilibrium quantity? [quantity]

Newspapers reported that median income increased by 3.2%. At the same time visits to the museum have increased 4.1%. Compute the income elasticity. Write down your answer, you will need it for the next question.

The following questions are on the market for potato chips.

The figure shows the market for a winter jackets. Alt Text: winter jackets Suppose the government imposes a price control at $100 per jacket. Think of the impact to the market after the price control is imposed on winter jackets. Impact on consumer surplus The consumer surplus [cschange]. Consumers of winter jackets are [cs] because [cswhy]. Impact on producer surplus The producer surplus [pschange]. Producers of winter jackets are [ps] because [pswhy]. Impact on DWL As a result, there is [dwl].

The following questions are on the market for Las Vegas hotel rooms.

The following questions are on the market for winter jackets.

The following question will ask you to read an article and answer a question.

Extra credit True or false: Expanding the number of lanes on a freeway reduces traffic. Explain.

If marginal benefit is equal to marginal cost, then the