1.Suppose a family is able to buy 6 tickets to see Dave Mathews Band, for $100 each, for a total cost of $600. But between when they buy the tickets and the time of the show, several of band members have an argument with Dave Mathews and leave the band, so the price of tickets in the resale market falls to $40 each.

Part A) After the fall in price, what is the opportunity cost of using the tickets to attend the show?

Part B) Using marginal analysis, should the family still attend the show?

2.The most recent GDP update from last week (July 29) shows that U.S. GDP grew at a annualized 6.5% rate in the second quarter of 2021 (April-June), and GDP in the U.S. is now above its high from before the Covid-19 recession. While this is positive, offer an explanation why this GDP increase may not reflect that the economy is that much better off.What other information would you want to be able to say the U.S. economy is better (or worse) off. Explain.