1. In his article on Super Bowl pricing, Rishe writes: "Generally speaking,academic investigations of sports ticket pricing have found that professional sports teams typically price their inventory in the inelastic portion of their demand functions." Why would teams charge ticket prices in the inelastic range?

2. Explain why the cross-price elasticity of demand can be a positive or a negative number. Give an example of products whose coefficient of price elasticity of demand would positive.

3. Suppose a demand function is given by, Q_d = 60 - 4P. Using the midpoint formula, what is the price elasticity of demand between: (a) $11 and $9; (b) $7 and $5?

4. "Successful advertising makes demand for the product more price elastic." Do you agree or disagree? Explain.

5. Suppose the supply of milk and the demand for milk are given by: Qs = 10 + 2P and Qd = 30 - 3P, respectively. (P is price.) (a) Calculate consumer surplus and producer surplus at equilibrium.

(b) Suppose a price floor is set at P = 5 and the government buys the surplus. Calculate the new consumer surplus and producer surplus..