6(1). Adam is a rational economic decision maker who enjoys eating ice cream from local shops. Ice cream is priced by the scoop, such that the marginal cost to Adam of the 3rd scoop of ice cream is $4. If Adam has chosen to eat only 2 scoops of ice cream, which of the following statements is true? Adam's marginal benefit of consuming the 3rd scoop is less than $4 At this price no consumer will buy 3 scoops of ice cream Adam would have had more ice creams scoops if he was looking to maximize his total net benefit Adam's marginal benefit of consuming the 3rd scoop is greater than $4 6(ii). Jesse operates an indie movie theatre in Ottawa. He sells 80 tickets per movie screening at the current ticket price and the market is in equilibrium. Jesse wants to open another theater in Toronto, where incomes are 20% higher than in Ottawa. Assuming that the income elasticity of demand for indie movies is 0.8 and that Jesse charges the same admission price in both cities, how many tickets will he be able to sell in his Toronto theater? 22% more 16% more 22% less 20% more 6(iii). The incidence of an excise tax depends on the price elasticity of supply and the price elasticity of demand. If the price elasticity of demand is and the price elasticity of supply is , then the excise tax is paid mainly by producers. Low (inelastic), high (elastic) High (elastic), low (inelastic) Low (inelastic), Low (inelastic) High (elastic), high (elastic)6{i~.r}. The market ferjeans is in equilibrium with price at $36 and quantity at ISSUE]. The government introduces a $1 per unit tax on jeans buyers. This causes equilibrium quantity to decrease to 610D. What is the deadweig ht loss