1. Ticket sales for a city's professional basketball team have increased 30% over the last five years, while average ticket prices have increased 50%. Is it possible that these changes indicate an upward-sloping demand curve? Explain

2. As an economic consultant to the dominant firm in a specific market, you have discovered that demand for your client's product is price inelastic at the current price and output. What pricing advice would you give?

3. In what ways are the common practices listed below subtle (or not-so-subtle) forms of price discrimination? (3 points)

a.Programs for frequent flyers and stayers b.Manufacturers' promotional coupon programs c.The promise of a retailer to match a lower competing price