1. According to an internal analysis by Uber's crack team of economists, demand for Uber rides is relatively inelastic, while the supply of Uber drivers who go to a certain area of the city is relatively elastic. (I.e., when prices go up, the number of rides demanded doesn't change much, but the number of drivers who offer to give rides goes up quite a lot.) (You can assume that supply and demand are neither perfectly elastic nor perfectly inelastic.) Consider a situation where a big sporting event has just ended, dramatically increasing the number of people looking for a ride from a certain area of the city. In this area: a. The price of a ride will go up a lot, and the quantity of rides will go down. b. The price of a ride will go up a lot, and the quantity of rides will go up a little. c. The price of a ride will go up a little, and the quantity of rides will go down. d. The price of a ride will go up a little, and the quantity of rides will go up a lot. e. The price of a ride will go down, and the quantity of rides will go up.

2. In light of supply chain challenges NewBuild, a company that builds houses in the Midwest, secured enough lumber last year to build houses through all of 2022. They paid $900 per ton of lumber. Since then, lumber prices have plummeted to $750 per ton. NewBuild could always resell their lumber at the current market price. NewBuild uses 15 tons of lumber per house they build. They also use 1,800 hours of labor at a wage of $25 per hour, $40,000 of other materials and $30,000 of appliances and fixtures per house. In addition, NewBuild pays its receptionist $40,000 per year and rents its office space for $60,000 per year. NewBuild expects to build 20 houses this year. What is NewBuild's marginal cost of building a house? a. $228,250 b. $168,250 c. $166,250 d. $128,250 e. $126,250