1. I visited Vancouver during spring break and went to Grouse Mountain, a local ski hill. As it happened, very few others decided to go skiing that day. Consider this conversation I had on the chairlift with the girl sitting next to me: [Me] What a beautiful day - there's not a cloud in the sky. Perfect conditions for skiing! [Girl] Yeah, it rains all the time in Vancouver. I wonder why no one is out here? [Me] What do you think I told her?

2. Graph these markets and then find the consumer surplus (showing the total value and total expenditure) and the producer surplus (showing also the total revenue and variable costs). Market 1: QD = 10 - P QS = 5 Market 2: QD = 10 - P QS = 5 + P Market 3: QD = 10 - P QS = 5 + 2 P Market 4: P = 10 - 2QD QS = 1 + P