a. Ben bought a lottery ticket that could allow him to win $22,500.00with a probabilityof 0.30(and nothing otherwise). Ben values money according to the utility functionv(m)=m. Ben's expected utility of playing the lottery is ______________________

b. Linear demand functions, while simple, are easy to interpret and have many applications. Suppose demand for pens is given by the functionD(p)=57.005.00p. Suppose pens cost $2. What is the price elasticity of demand? Give your answer to two decimals. __________________

c. In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve, the government imposes a $90tax per unit bought and sold. The tax causes the equilibrium quantity to fall from86units to76units. The deadweight loss of this tax is $_________________